There are three business ownership types: (1) proprietorship, (2) partnership, and (3) corporation. Many of their accounting transactions are similar. However, there are some business events that require special transaction handling in accounting entries. In this assignment, you will identify and prepare entries for the corporate ownership business type. Instructions For this assignment, use the BUS3061 Assignment u04a3 Template (listed in Resources). Imagine you are an accountant for J. Malone’s Law Firm, Inc. The accounts and transactions of the firm are listed below.
Although many small businesses might operate on a cash basis, most of the larger ones use the accrual basis to record business events in the general journal. In this assignment, you will apply your knowledge of various business events that require journal entries to be made. Instructions For this assignment, use the BUS3061 Assignment u04a1 Template (listed in Resources). Accounts to be used are given below: Cash. Prepaid insurance. Land. Buildings. Equipment. Accounts payable. Unearned service revenue. Owner’s capital. Owner’s drawings. Service revenue. Advertising expense. Salaries and wages expense. Each of the following business events for Magnolia Greens Frisbee Golf Course will require a journal entry: May 1: Invested $20,000 cash in the golf course business. May 3: Purchased Hampstead Golf Land for $15,000 cash. The price includes land $12,000, shed $2,000, and equipment $1,000. May 5: Paid advertising expenses of $700. May 6: Paid cash $600 for a 1-year insurance policy. May 10: Purchased golf discs and other equipment for $1,050 from Discs Are Us, payable in 30 days. May 18: Received $1,100 in cash for golf fees earned (service revenue). May 19: Sold 150 coupon books for $10 each. Each book contains four coupons that enable the holder to play one round of golf. May 25: Withdrew $800 cash for personal use. May 30: Pay salaries for part-time employees $250. May 30: Paid Discs Are Us the full amount due. May 31: Received $2,100 cash for fees earned. BUS3061 Fundamentals of Accounting Instructions Accounts to be used: Cash. Prepaid insurance. Land. Buildings. Equipment. Accounts payable. Unearned service revenue. Owner’s capital. Owner’s drawings. Service revenue. Advertising expense. Salaries and wages expense. Leave a space between each dated transaction. May 1?Invested $20,000 cash in the golf course business.??May 3?Purchased Hampstead Golf Land for $15,000 cash. The price includes land $12,000, shed $2,000, and equipment $1,000.??May 5?Paid…
4-1.doc