Prairie Park Was Started On April 1 By C J Amaro And Associa
Prairie Park Was Started On April 1 By C J Amaro And Associates The
Prairie Park was started on April 1 by C. J. Amaro and associates, and during April, various financial transactions occurred. These include investments, purchases, expenses, hiring, revenue, dividends, and payments related to advertising, admission fees, and sales of coupon books. The assignment requires journalizing these transactions promptly, recording each in the correct order, and using specific accounts such as Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Service Revenue, Common Stock, Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense. For transactions that do not affect accounts, record "No entry" and a zero amount as needed.
Paper For Above instruction
The financial activities of Prairie Park in April reflect typical initial startup operations, including capital investment, land acquisition, promotional expenditures, administrative salaries, employee hiring, insurance procurement, dividend disbursement, ticket and coupon sales, and revenue collection. Proper journalizing of these transactions is essential for accurate financial reporting and establishing a clear record of the company's financial position as it begins operations.
Journal Entries for April Transactions
April 1: Stockholders' Investment
Debit: Cash $49,109
Credit: Common Stock $49,109
To record the investment of cash by stockholders in exchange for common stock.
April 4: Purchase Land
Debit: Land $30,756
Credit: Cash $30,756
To record purchase of land for cash.
April 8: Advertising Expense on Account
Debit: Advertising Expense $1,929
Credit: Accounts Payable $1,929
To record incurred advertising expense payable on account.
April 11: Salaries Payment
Debit: Salaries and Wages Expense $1,620
Credit: Cash $1,620
To record payment of employee salaries.
April 12: Hire Park Manager (Effective May 1)
No financial transaction occurs at the date of hiring; no entry needed now.
April 13: Purchase of Insurance Policy
Debit: Prepaid Insurance $1,132
Credit: Cash $1,132
To record payment for a one-year insurance policy.
April 17: Declare and Pay Dividends
Debit: Dividends $1,554
Credit: Cash $1,554
To record payment of cash dividends to shareholders.
April 20: Receipt of Admission Fees
Debit: Cash $5,549
Credit: Service Revenue $5,549
To record cash received from admission fees.
April 25: Sale of Coupon Books
Debit: Cash $9,000
Credit: Unearned Service Revenue $9,000
To record cash received from selling 180 coupon books at $50 each, which entitles the holder to admission rights.
April 30: Cash Admission Fees
Debit: Cash $9,458
Credit: Service Revenue $9,458
To record cash received from additional admission fees.
April 30: Payment for Advertising Owed
Debit: Accounts Payable $747
Credit: Cash $747
To record payment toward the outstanding advertising expense incurred earlier in April.
Conclusion
These journal entries accurately capture Prairie Park's financial activities during April, adhering to accrual and cash basis accounting principles. Proper recording ensures transparency and facilitates effective management and reporting of the park's financial health as it commences operations.
References
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