Question

Record and post transactions, prepa trial balance. (LO 3,4,5) transactions directly in the general ledger. Explain to the accountant whether you think P3-8A On February 28, 2018, Star Theatre Inc.'s general ledger showed Cash $15,000; Land $8 Theatre Inc.'s general ledger showed Cash $15.000: Land $85.000; Buildings $77,000; Equipment $20,000; Accounts Payable $12,000; Mortgage Payable $118,000; Common Sha Earnings $27,000. During the month of March, the following transactions occurred: 4,; Mortgage Pavable $118.000: Common Shares $40.000; and Retained Mar. 1 Received three movies to be shown during the first three weeks of March o be shown during the first three weeks of March. The film rental was $27,000. Of that amount, $10,000 was paid in cash and the remainder was on accou Theatre uses the account Rent Expense to record film rentals). ver to operate concession stand. Brewer agrees to pay Star Theatre 15% of gross receipts, payable on the last day of each month for the right to operate the concession stand, (HM: Star Theatre uses the account Concession Revenue to record concession receipts earned.) Ordered three additional movies, to be shown the last 10 days of March. The film rental cost will be $300 per night. Paid balance due on the movies rented on March 1. Paid the accounts payable owing at the end of Februar Received $25,500 from customers for admissions for the first half of the month. (Hint: Star Theatre uses the account Fees Earned to record revenue from admissions.) 19 Paid advertising expenses, $950. 20 Received the movies ordered on March 5 and paid rental fee of $3,000 ($300 X 10 nights). Paid salaries of $4,200. Paid $1,250 of the balance due on the mortgage, as well as $750 of interest on the mortgage. 28 Paid $3,000 for the monthly income tax instalment. 30 Received statement from M. Brewer, showing gross concession receipts of $16,600, and the balance due to Star Theatre of $2.490 ($16,600 X 15%) for March. Brewer paid half of the balance due and will remit the remainder on April 5. 31 Received $25,800 from customers for admissions for the past two weeks. 13 23 26 Instructions (a) Journalize the March transactions. (b) Set up T accounts, enter the beginning balances in the ledger a nts enter the beginning balances in the ledger at February 28, and post the March journal entries to the general ledger. (c) Prepare a trial balance at March 31.

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Part a and c Part b Date Account Debit Credit $ 27,000 Cash Debit Beginning Balance $15,000 15-03-2018 $ 25,500 30-03-2018 $ 1,245 31-03-2018 $ 25,800 01-03-2018 Rent Expense 01-03-2018 Cash 01-03-2018 Accounts Payable (To record movie rental expense) $ $ Credit 01-03-2018 $ 12-03-2018 $ 13-03-2018 $ 19-03-2018 $ 20-03-2018 $ 23-03-2018 $ 26-03-2018 $ 28-03-2018 $ 10,000 17,000 10,000 17,000 12,000 950 3,000 4,200 2,000 3,000 $ 17,000 12-03-2018 Accounts Payable 12-03-2018 Cash (To record payment) $ 17,000 Ending Balance $ 15,395 $ 12,000 13-03-2018 Accounts Payable 13-03-2018 Cash (To record payment) $ 12,000 Accounts Receivable Debit 31-03-2018 $ 1,245 Credit $ 25,500 15-03-2018 Cash 15-03-2018 Fees Earned (To record admission fee) $ 25,500 Ending Balance $ 1,245 $ 950 Land 19-03-2018 Advertising Expense 19-03-2018 Cash (To record advertising expense) $ 950 Credit Debit Beginning Balance $85,000 $ 3,000 20-03-2018 Rent Expense 20-03-2018 Cash (To record movie rental expense) $ 3,000 Ending Balance $ 85,000 Building $ 4,200 Credit 23-03-2018 Salaries and wages expense 23-03-2018 Cash (To record salaries expense) $ Debit Beginning Balance 4,200 $ 77,000 $ $ 1,250 750 Ending Balance $ 77,000 26-03-2018 Mortgage Payable 26-03-2018 Interest Expense 26-03-2018 Cash (To record payment) $ 2,000 Equipment Credit Debit Beginning Balance $ 20,000 $ 3,000 28-03-2018 Income Tax Expense 28-03-2018 Cash (To record income tax expense payment) $ 3,000 Ending Balance $ 20,000 $ $ 1,245 1,245 31-03-2017 Cash 31-03-2017 Accounts Receivable ($2,490/2) 31-03-2017 Concession Revenue (To record commision revenue) $ Accounts Payable Debit Credit 12-03-2018 $ 17,000 Beginning Balance $ 13-03-2018 $ 12,000 02-03-2018 $ 2,490 12,000 17,000 $ 25,800 Ending Balance $ - 31-03-2017 Cash 31-03-2017 Fees Earned (To record fees earned received) $ 25,800

Mortgage Payable Debit Credit 26-03-2018 $ 1,250 Beginning Balance Part d Trial balance $ 118,000 Credit Debit $ 15,395 $ 1,245 $ 85,000 $ 77,000 $ 20,000 Ending Balance $116,750 Debit Common Shares Credit Beginning Balance $ 40,000 Cash Accounts Receivable Land Building Equipment Mortgage Payable Common Shares Retained Eearning Fees Earned Concession Revenue Advertising Expense Rent Expense Salaries and wages expense Interest Expense Income Tax Expense $ 116,750 $ 40,000 $ 27,000 $ 51,300 $ 2,490 Ending Balance $ 40,000 Fees Earned Debit Credit 15-03-2018 $ 31-03-2018 $ $ $ $ $ $ 950 30,000 4,200 750 3,000 25,500 25,800 Ending Balance $ 51,300 Total $ 237,540 $ 237,540 Concession Revenue Debit Credit 31-03-2017 $ 2,490 Ending Balance $ 2,490 Advertising Expense Debit 19-03-2018 $ 950 Credit Ending Balance $ 950 Credit Rent Expense Debit 01-03-2018 $ 27,000 20-03-2018 $ 3,000 Ending Balance $ 30,000 Credit Salaries Expense Debit 23-03-2018 $ 4,200 Ending Balance $ 4,200 Credit Interest Expense Debit 26-03-2018 $ 750 Ending Balance $ 750 Credit Income Tax Expense Debit 28-03-2018 $ 3,000 Ending Balance $3,000