P3.6B (LO 3) (Record transactions.) Mountain Biking Corp. opened on April 1. The following selected events and transactions occurred during April: Apr. 1 Issued common shares for $100,000 cash. 3 Purchased an out-of-use ski hill costing $370,000, paying $60,000 cash and signing a bank loan payable for the balance. The $370,000 purchase price consisted of land $204,000; buildings $121,000; and equipment $45,000. 8 Purchased advertising space for $1,800 on account. 10 Paid salaries to employees, $2,800. 13 Hired a park manager at a salary of $4,000 per month, effective May 1. 14 Paid $5,500 for a one-year insurance policy. 17 Declared and paid $600 of dividends to shareholders. 20 Received $10,600 in cash from customers for admission fees. (Hint: Use the account Sales to record admission fees.) 30 Paid $1,800 on account for the advertising purchased on April 8. 30 Paid $2,000 of interest on the bank loan. 30 Paid an income tax instalment of $800. Instructions Journalize the transactions.

P3.6B (LO 3) (Record transactions.) Mountain Biking Corp. opened on April 1. The following selected events and transactions occurred during April: Apr. 1 Issued common shares for $100,000 cash. 3 Purchased an out-of-use ski hill costing $370,000, paying $60,000 cash and signing a bank loan payable for the balance. The $370,000 purchase price consisted of land $204,000; buildings $121,000; and equipment $45,000. 8 Purchased advertising space for $1,800 on account. 10 Paid salaries to employees, $2,800. 13 Hired a park manager at a salary of $4,000 per month, effective May 1. 14 Paid $5,500 for a one-year insurance policy. 17 Declared and paid $600 of dividends to shareholders. 20 Received $10,600 in cash from customers for admission fees. (Hint: Use the account Sales to record admission fees.) 30 Paid $1,800 on account for the advertising purchased on April 8. 30 Paid $2,000 of interest on the bank loan. 30 Paid an income tax instalment of $800. Instructions Journalize the transactions.

Name: P3.6B (LO 3) (Record transactions.) Mountain Biking Corp. opened on A
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Description: P3.6B (LO 3) (Record transactions.) Mountain Biking Corp. opened on April 1. The followingselected events and transactions occurred during April:Apr. 1 Issued common shares for $100,000 cash.3 Purchased an out-of-use ski hill costing $370,000, payin

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...

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