Question

Question 3 of 6 -/1 View Policies Current Attempt in Progress 3 The Starr Theater, owned by Meg Vargo, will begin operations in March. The Starr will be unique in that it will show only triple features of sequential theme movies. As of March 1, the ledger of Starr showed: Cash $3,050, Land $23,000, Buildings (concession stand, projection room, ticket booth, and screen) $12,000, Equipment $12,000, Accounts Payable $7,200, and Owner's Capital $42,850. During the month of March, the following events and transactions occurred. Mar.2 Rented the three Indiana Jones movies to be shown for the first 3 weeks of March. The film rental was $3,500: $1,400 was paid in cash and $2,100 will be paid on March 10. Ordered the Lord of the Rings movies to be shown the last 10 days of March. It will cost $150 per night. Received $4,400 cash from admissions. Paid balance due on Indiana Jones movies rental and $1,700 on March 1 accounts payable. Starr Theater contracted with Adam Ladd to operate the concession stand. Ladd is to pay 15% of gross concession receipts, payable monthly, for the rental of the concession stand. 12 Paid advertising expenses $900. 20 Received $5,500 cash from customers for admissions. Received the Lord of the Rings movies and paid the rental fee of $1,500. Paid salaries of $2,600. Received statement from Adam Ladd showing gross receipts from concessions of $5,000 and the balance due to Starr Theater of $750 ($5,000 x 15%) for March. Ladd paid one-half the balance due and will remit the remainder on April 5. Received $9,000 cash from customers for admissions. 9 10 11 20 31 31 31 (a) Enter the beginning balances in the ledsen 70

Answer 1

		Star Theatre
	Journal Enteries
Date	Particulars	Ref	Debit	Credit
Mar-02	Rental Expense Dr.			3500
		To Cash			1400
		To Accounts Payable			2100
Mar-03	No entry
		not a financial transacction
Mar-09	Cash Dr			4400
		To Admission Revenue			4400
Mar-10	Accounts Payable Dr.			1700
		To Cash			1700
Mar-11	No entry
		not a financial transaction
Mar-12	Advertising Expense Dr.			900
		To Cash			900
Mar-20	Cash Dr.			5500
		To Admission Revenue			5500
Mar-20	Rent Expense Dr			1500
		To Cash			1500
Mar-31	Salaries Expnese Dr.			2600
		To Cash			2600
Mar-31	Cash Dr (half of 750)			375
	Accounts Receivable Dr. (half of 750)		375
		To Rent Revenue			750
Mar-31	Cash Dr.			9000
		To Admission Revenue			9000

		Star Theatre
		Ledger
		Cash
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-01	Opening Balance		3050		3050
Mar-02	Rental Expense			1400	1650
Mar-09	Admission Revenue		4400		6050
Mar-10	Accounts Payable			1700	4350
Mar-12	Adverstising Expense			900	3450
Mar-20	Admission Revenue		5500		8950
Mar-20	Rental Expense			1500	7450
Mar-31	Salaries Expense			2600	4850
Mar-31	Rent Revenue		375		5225
Mar-31	Admission Revenue		9000		14225
		Accounts Receivable
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-31	Rent Revenue		375		375
		Land
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-01	Opening Balance		23000		23000
		Buildings
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-01	Opening Balance		12000		12000
		Equipment
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-01	Opening Balance		12000		12000
		Accounts Payable
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-01	Opening Balance			7200	7200
Mar-02	Rental Expense			2100	9300
Mar-09	Cash		1700		7600
		Owner's Capital
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-01	Opening Balance			42850	42850
		Admission Revenue
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-09	Cash			4400	4400
Mar-20	Cash			5500	9900
Mar-31	Cash			9000	18900
		Rent Revenue
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-31	Cash			750	750
		Salaries Expense
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-12	Cash		2600		2600
		Advertising Expense
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-12	Cash		900		900
		Rent Expense
Date	Particulars	Ref	Dr.	Cr.	Balance
Mar-02	Cash		1400		1400
Mar-02	Accounts Payable		2100		3500
Mar-20	Cash		1500		5000

		Star Theatre
		Trial Balance
S. No	Accounts Title	Dr.	Cr.
1	Cash		14225
2	Accounts Receivable		375
3	Land		23000
4	Buildings		12000
5	Equipment		12000
6	Accounts Payable			7600
7	Owner's Capital			42850
8	Admission Revenue			18900
9	Rent Revenue			750
10	Advertising Expense		900
11	Salaries Expense		2600
12	Rent Expense		5000
		Total	70100	70100