Question

CALCULATO FULL FRINT RACK Problem 3-OBA (Part Level Submission) The Cullumber Theater Inc. was recently formed. It began operations in March 2022. The Cullumber is unique in that it will show only triple features of sequential theme movies. On March 1, the ledger of The Cullumber showed Cash $15.500 Land $40.000; Buildings (concession stand, projection room, ticket booth, and screen) $22,000; Equipment $15,000, Accounts Payable $10,100, and Common Stock $82,400. During the month of March, the following events and transactions occurred: Mar. 2 Rented the first three Star Wars movies (Star Wars The Empire Strikes Back, and The Return of the Jed) to be shown for the first three weeks of March. The film rental was $13,500, $2,300 was paid in cash and $11,200 will be paid on March 10. 3 Ordered the first three Star Trek movies to be shown the last 10 days of March. It will cost $600 per night. 9 Received $9,300 cash from admissions 10 Paid balance due on Star Wars movies' rental and $3,100 on March 1 accounts payable 11 The Cullumber Theater contracted with R. Lazlo to operate the concession stand. Lazlo agrees to pay The Cullumber 15% of gross receipts, payable monthly for the rental of the concession stand. 12 Paid advertising expenses $500 20 Received 59,100 cash from customers for admissions 20 Received the Star Trek movies and paid rental fee of $6,000. 31 Paid salaries of $3,500. 31 Received statement from R. Lario showing grous receipts from concessions of $10,200 and the balance due to the Cullumber of $1.500 (10.2001 March arlo paid half the balance due and will remit the remainder on April 5.

Answer 1

Solution

Cullumber Theater Inc

Post March Journal entries to the ledger:

Cash

Cash
Date	Description	Amount	Date	Description	Amount
March 1, 2022	Balance	$15,500	March 2, 2022	Movie Rental Fees	$2,300
March 9, 2022	Admission Fees	$9,300	March 10, 2022	Accounts Payable	$14,300
March 20, 2022	Admission Fees	$9,100	March 12, 2022	Advertising Expense	$500
March 31, 2022	Concession Revenue	$765	March 20, 2022	Movie Rental Fees	$6,000
			March 31, 2022	Salaries Expense	$3,500
April 1, 2022	Balance	$8,065

Accounts Receivable
Date	Description	Amount	Date	Description	Amount
March 31, 2022	Concession Revenue	$765
April 1, 2022	Balance	$765

Land
Date	Description	Amount	Date	Description	Amount
March 1, 2022	Balance	$40,000
April 1, 2022	Balance	$40,000

Accounts Payable
Date	Description	Amount	Date	Description	Amount
March 10, 2022	Cash	$14,300	March 1, 2022	Balance	$10,100
			March 2, 2022	Movie Rental Fees	$11,200
			April 1, 2022	Balance	$7,000

Admission Fees
Date	Description	Amount	Date	Description	Amount
			March 9, 2022	Cash	$9,300
			March 20, 2022	Cash	$9,100
			April 1, 2022	Balance	18,400

Concession Revenue
Date	Description	Amount	Date	Description	Amount
			March 31,2022	Cash	$765
			March 31,2022	Accounts Receivable	$765
			April 1, 2022	Balance	$1,530

Movie Rental Fees
Date	Description	Amount	Date	Description	Amount
March 2, 2022	Cash	$2,300
March 2, 2022	Accounts Payable	$11,200
March 20, 2022	Cash	$6,000
April 1, 2022	Balance	$19,500

Advertising Expense
Date	Description	Amount	Date	Description	Amount
March 12, 2022	Cash	$500
April 1, 2022	Balance	$500

Salaries Expense
Date	Description	Amount	Date	Description	Amount
March 31, 2022	Cash	$3,500
April 1, 2022	Balance	$3,500