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The Wildhorse Theater Inc. was recently formed. It began operations in March 2022. The Wildhorse is unique in that it will show only triple features of sequential theme movies. On March 1, the ledger of The Wildhorse showed Cash $18,000; Land $40,000; Buildings (concession stand, projection room, ticket booth, and screen) $23,500; Equipment $17,000; Accounts Payable $12,300; and Common Stock $86,200. 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 Jedi) to be shown for the first three weeks of March. The film rental was $12.500: $1,500 was paid in cash and $11,000 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 $750 per night. 9 Received $11,100 cash from admissions. 10 Paid balance due on Star Wars movies' rental and $2,500 on March 1 accounts payable. 11 The Wildhorse Theater contracted with R. Lazlo to operate the concession stand. Lazlo agrees to pay The Wildhorse 15% of gross receipts, payable monthly, for the rental of the concession stand. 12 Paid advertising expenses $800. 20 Received $8,100 cash from customers for admissions. 20 Received the Star Trek movies and paid rental fee of $5,500. 31 Paid salaries of $3,700. 31 Received statement from R. Lazlo showing gross receipts from concessions of $10,800 and the balance due to the Wildhorse of $1,61 ($10,800 x 15) for March. Lazlo paid half the balance due and will remit the remainder on April 5. 31 Received $18,000 cash from customers for admissions. Using T-accounts, enter the beginning balances to the ledger

Answer 1

T Accounts :-

Rules of posting into t accounts . first we have to enter the opening balance in T accounts as given in the questions . we have entered assets balance in debit side and liabilities balance in credit side as per their nature . Then we have taken the transactions from journals entries in working notes and post them to T accounts . For example

Film rental expense a/c Dr $12,500

Cash A/c Cr . $1,500

Accounts payable A/c $11,000

in the above journal we will post in credit side of t accounts of Film rental expenses as Cash A/c $1500 and Accounts payable A/c $11,000 . Similarly we will post debit side of T accounts of Cash as Film rental expenses a/c $1500 an similarly in t account of accounts payable $11,000.

Cash
	$		$
Balance b/d	$18,000	Film Rental Expenses A/c	$12,500
Revenue A/c	$11,100	Accounts Payable A/c	$13,500
Revenue A/c	$8,100	Advertisement Expense A/c	$800
Revenue A/c	$18,000	Accounts Payable A/c	$5,500
		Salaries Expenses A/c	$3,700
		Rent for Concession Stand A/c	$810
		Balance C/d	$18,390
Total	$55,200	Total	$55,200
Balance b/d	$18,390
Land
Balance b/d	$40,000	Balance c/d	$40,000
Total	$40,000	Total	$40,000
Balance b/d	$40,000
Building
Balance b/d	$23,500	Balance C/d	$23,500
Total	$23,500	Total	$23,500
Balance b/d	$23,500
Equipment
Balance b/d	$17,000	Balance c/d	$17,000
Total	$17,000	Total	$17,000
Balance b/d	$17,000
Accounts payable
Cash A/c	$13,500	Balance b/d	$12,300
Cash A/c	$5,500	Film Rental Expenses A/c	$11,000
Balance C/d	$11,800	Film Rental Expenses A/c	$7,500
	$30,800		$30,800
		Balance b/d	$11,800
Total		Total
Common Stock
Balance c/d	$86,200	Balance b/d	$86,200
Total		Total
		Balance b/d	$86,200
Film Rental Expenses A/c
Cash A/c	$1,500	Balance c/d	$20,000
Accounts payable A/c	$11,000
Accounts Payable A/c	$7,500
Total	$20,000	Total	$20,000
Balance b/d	$20,000
Revenue A/c
	$		$
Balance C/d	$37,200	Cash A/c	$11,100
		Cash A/c	$8,100
		Cash A/c	$18,000
Total	$37,200	Total	$37,200
		Balance b/d	$37,200
Advertisement Expense A/c
	$		$
Cash A/c	$800	Balance c/d	$800
Total	$800	Total	$800
Balance b/d	$800
Salaries Expenses A/c
	$		$
Cash A/c	$3,700	Balance c/d	$3,700
Total	$3,700	Total	$3,700
Balance b/d	$3,700
Rent for Concession Stand A/c
	$		$
Cash A/c	$810	Balance c/d	$1,620
Rent for Concession Stand Payable A/c	$810
Total	$1,620	Total	$1,620
Balance b/d	$1,620
Rent for Concession Stand Payable A/c
	$		$
Balance c/d	$810	Rent for Concession Stand A/c	$810
Total	$810	Total	$810
		Balance b/d	$810

Workings note :-

Before posting the t accounts we have to journalized the transactions .

Hence Journals of the transaction would be

Date	Particulars	Debit	Credit
Mar.2	Film Rental Expenses A/c	$12,500
	Cash A/c		$1,500
	Accounts payable A/c		$11,000
Mar.3	Film Rental Expenses A/c	$7,500
	Accounts Payable A/c		$7,500
Mar.9	Cash A/c	$11,100
	Revenue A/c		$11,100
Mar.10	Accounts Payable A/c	$13,500
	Cash A/c		$13,500
Mar.12	Advertisement Expense A/c	$800
	Cash A/c		$800
Mar.20	Cash A/c	$8,100
	Revenue A/c		$8,100
Mar.20	Accounts Payable A/c	$5,500
	Cash A/c		$5,500
Mar.31	Salaries Expenses A/c	$3,700
	Cash A/c		$3,700
Mar.31	Rent for Concession Stand A/c	$1,620
	Cash A/c		$810
	Rent for Concession Stand Payable A/c		$810
Mar.31	Cash A/c	$18,000
	Revenue A/c		$18,000