Bucket Club Miniature Golf and Driving Range was opened on May 1. Th e following events and transactions are for May:
May 1 Amin Mawani, the owner, invested $75,000 cash in the business.
2 Purchased Lee's Golf Land for $250,000. The price consists of land, $120,000; building, $80,000; and equipment, $50,000. Paid $60,000 cash and signed a note payable for the balance.
4 Purchased golf clubs and other equipment for $16,000 from Woods Company on account.
5 Hired a golf pro to teach lessons at the golf range at a rate of $40 per hour.
6 Paid $2,760 cash for a one-year insurance policy.
15 Collected $2,000 golf fees earned in cash from customers.
19 Paid Woods Company $5,000 for the items purchased on May 4.
20 Billed a customer, Deer Fern Inc., $1,500 for golf fees earned. Deer Fern Inc. paid $500 and agreed to pay the remaining amount owing in 10 days.
30 Received $1,000 from Deer Fern Inc. for the May 20 transaction.
31 Collected $4,000 cash from customers for golf fees earned.
31 Paid salaries of $2,480.
31 Paid $715 of interest on the note payable.
31 Paid Amin Mawani $1,750 for his personal use.
The company's chart of accounts includes the following accounts: Cash; Accounts Receivable; Prepaid Insurance;
Land; Buildings; Equipment; Accounts Payable; Notes Payable; A. Mawani, Capital; A. Mawani, Drawings; Fees
Earned; Salaries Expense; and Interest Expense.
Journalize the May transactions.
TAKING IT FURTHER After Amin has reviewed the journal entries, he complains that they don't seem to be very useful. Explain to Amin the purpose of the journal entries and the next step in the accounting cycle. Include in your answer whether or not Amin will find any useful information after the next step is completed.