Answer:
Swifty Corporation
Journal Entries:
April 1:
Debit Cash Account $49,800
Credit Common Stock $49,800
To record the issue of common stock for cash.
April 4:
Debit Land $30,500
Credit Cash Account $30,500
To record the purchase of land for cash.
April 8:
Debit Advertising Expense $1,510
Credit Accounts Payable $1,510
To record advertising expense incurred on account.
April 11:
Debit Salaries and Wages Expense $1,380
Credit Cash Account $1,380
To record the payment of salaries to employees.
April 13:
Debit Prepaid Insurance $1,620
Credit Cash Account $1,620
To record the prepayment of Insurance for one year.
April 17:
Debit Dividends $1,810
Credit Cash Account $1,810
To record the declaration any payment of dividend.
April 20:
Debit Cash Account $6,200
Credit Service Revenue $6,200
To record the receipt of admission fees in cash.
April 25:
Debit Cash Account $5,763
Credit Unearned Service Revenue $5,763
To record the receipt of admission fees in advance.
April 30:
Debit Cash Account $9,000
Credit Service Revenue $9,000
To record the receipt of admission fees in cash.
April 30:
Debit Accounts Payable $1,510
Credit Cash Account $1,510
To record the payment of advertising on account.
Explanation:
Swifty Corporation uses journals to initially record its business transactions as they occur on a daily basis. Journalizing transactions is an important step in the accounting process, as it identifies accounts involved and shows the accounts to be debited and the ones to be credited in the general ledger.
