Reference no: EM133001933

Wildhorse Miniature Golf and Driving Range Inc. was opened on March 1 by Michael Wear. These selected events and transactions occurred during March.

Mar.

• 1 Shareholders invested $61,000 cash in the business in exchange for common shares of the corporation.
• 3 Purchased Arnie's Golf Land for $46,360 cash. The price consists of land $28,060, building $10,980, and equipment $7,320.
• 5 Advertised the opening of the driving range and miniature golf course, paying advertising expenses of $1,910 cash.
• 6 Paid cash $2,970 for a 1-year insurance policy.
• 10 Purchased golf clubs and other equipment for $5,860 from Golden Bear Company, payable in 30 days.
• 18 Received golf fees of $1,380 in cash from customers for golf fees earned.
• 19 Sold 122 coupon books for $25 each in cash. Each book contains ten coupons that enable the holder to play one round of miniature golf or to hit one bucket of golf balls. (Hint: The revenue is not earned until the customers use the coupons.)
• 25 Declared and paid a $610 cash dividend.
• 30 Paid salaries of $770.
• 30 Paid Golden Bear Company in full for equipment purchased on March 10.
• 31 Received $1,060 in cash from customers for golf fees earned.
• 31 Paid estimated income taxes for the month amounting to $122.

The company uses these accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Deferred Revenue, Common Shares, Retained Earnings, Dividends Declared, Fees Earned, Advertising Expense, Salaries Expense, and Income Tax Expense.

Problem 1: Prepare journal entries to record the March transactions.