Question

00 Paste B I U Merge & Center $ - % % ) .00 Conditional Format Formatting as Table Cell Styles T Format Sort & Filter A26 хvfх A B с D E F G H 1 J к L M N 0 Р 8 6 9 10 1 In the early part of 2020, Rock'n'Blues Theater Inc. was formed and began construction and decoration on a suitable venue, so that operations could 2 begin in May 2020. The R'n'B will feature up-and-coming local bands and will be able to host larger concerts or smaller groups with customer dancing areas. 3 On May 1, 2020, R'n'B's ledger showed balances of Cash $21,000, Land $22,000, Buildings $43,000, Equipment $16,000, Accounts Payable $12,000, 4 and Common Stock $90,000. During the month of May, the following events and transactions occurred. 5 6 May 2 Hired a well-known regional band, Sandy Eyes, to perform at the opening on May 10th for $10,000. Paid $2,000 downpayment, with the balance on account. 7 3 Paid $4,500 on accounts payable. Received $9,900 cash in advance for admissions to the opening. 10 Paid balance due to Sandy Eyes for the performance. Collected another $10,000 in tickets sold at the door. 11 Contracted with R. Finkel to operate a concession stand. Finkel agrees to pay R'n'B 15% of gross receipts, payable monthly, for the rental of the concession stand. 11 12 Hired a local band, Tumbleweed, to play May 16th and May 17th for $5,000, payable at the end of service. 12 Paid advertising expenses $500. 13 16 Received $4,300 cash from customers for admissions. 17 Received $5,800 cash from customers for admissions. 17 Paid Tumbleweed for services. 16 20 Hired another local band, Sprinkles, to play four nights from May 27 through May 30th for $12,000. Paid $3,000 cash down, with the 17 balance to be paid when services are complete on May 30th. Received a total of $22,000 cash from customers for the four Sprinkles performances. Paid Sprinkles the balance due at completion of the final performance. Paid salaries of $3,800. 31 Finkel had gross receipts from concessions in May of $10,000, resulting in $1,500 ($10,000 x .15) due to R'n'B for May. Finkel paid half the balance 22 due and will remit the remainder on June 5. 14 14 15 18 30 19 30 20 31 21 23 24 In addition to the accounts identified above, the chart of accounts includes Accounts Receivable, Admissions Revenue, Advertising Expense, Concessions Revenue, 25 Performer Expense, Prepaid expenses, Salaries and Wages Expense, and Unearned Revenues. 26 27 a. Using T-accounts, enter the beginning balances at May 1, 2020, to the ledger. 28 b. Journalize the March transactions, including explanations. 29 C. Post the May journal entries to the ledger. 30 d. Prepare a trial balance on May 31, 2020. 31

Answer 1

To Balonce bly OTAFOGADO TVEG trad Land By Balance clch $22,00r $ 22,00 $ 22,00 $ 22,000 Building To Balance bif $ 43,07 By Balana oly $ 43,0s $43,00 $43,000 To Balance bly Equipments $ 16,000 By Balanu of $ 16,000 $ 16,0vo $ 16,002 Common Stock To Balonie blf $90,000 By Balance of $90,071 $90,000 $90,000

Journal Entries Cr May 2 Performer Expense die Dr $10,000 To cash dic $ 2,02 $8,000 To Sandy Eyes tic (Paid downpaymand to Sondy Eyes for Pausormance Accounts Payable All May3 Dr $4,500 To cash dic $4,500 (Paid on dcounts Payable) May 6 Cash Alc To Admission Revenue Alc. Dr $9,900 $9,900 (Advance for admission to tu opening May 10 Sandy Eyes Alc Dr $8,000 To Cash Alc $ 8,00 (Remaining Balance paid to Sondy Eyes )

Journal Entries May 10 Cash Alc Dr $10,000 To Unearned Revenue dic $10,000 ( Tickets sold at Door ) ay Hall Accounts Receivable Alc To Concessioni Roventute Dr $5,000 May 12 ( Performer Expense All To Tumbleweed Alc r Hired another band) $5,000 May 14 Dr $500 Advertising Expenses AIC To cash Alc (Paid Aduntising Expenses ) $500 May 16 Dy $4,300 Cash Alc To Admission Revenue dic $4,300 (collected from customers for Admission)

Journal Entries Dr. Cr. May 17 Cash Alc Dr $5,800 To Admission Revenue Alc $ 5,800 Dr $5,000 $5,000 (collected from Customers for Admissioni) May 17 Tumbleweed Alc To Cash Alc (Poid Tumbleweed for Souvies) Dr $12,000 May 20 20 Perfomer Expense Aic To Cash AlC To Sprinkles Alc (Hired and her band for for perfomance) $3,000 $ 9,000 May 3o Cash Alc Dr $22.000 Tô Admission Revenue All $ 22,000 c Collected from Customers for Admission)

May so Sprinkles all Journal Entries Dr $9,000 To Cash Alc $9,000 C Paid the balance amount duc) May 31 Salauus Acwages Expense Tô Cach sic AIC Dr $ 3,800 $3,800 (Paid Salaries ) May 31 Dr $750 Cash Alc leaccount Receivable Vic To Concession Revenue Alc Dr $750 $1,500 L Gooss Receipts from Concession )

VOITARORLEDGER umu Ryto Balance bif To Admission Revenue To Uneauned Revenue To Admision Revenue $9.900 $2,000 $10,00r $4,500 $ 8,000 To Admission Revenue To Admission Revenue To Concession Revenue Cash Alc $ 2), 0p Ba Ba Jonee By Performer Expence By decounts Payable By Sandy eyes. By Advertising Expense By Tumblewed By Performer Expense $12,000 By sprinkles $ 9,020 By Salaries & Woges Exponse $3,800 By Balonce clf $28,950 $4,300 $ 5,800 $ 22,00 $ 750 $ 500 $5,000 $ 73,750 $73 1750 To Balance of Almision Revenue dic $42,000 By Cash All Cash Al By Cash Alc $9,900 $4,300 $ 5,800 $ 22,000 By Cash Alc $ 42,000 $ 42,000

To Cash sic To Sandy Eyes Performer Expense All By Balance off $2,020 $ 8,000 $ 27,000 AIC To Tumbleweed Aic To Cash vic To Sprinkles Alc $5,00 $3,00 $9,000 $ 27,000 $ 27,000 To Cash To Balance of Accounts Payables Aic $4,500° By Balance blf $7,500 $12,000 $ 12,00 $12,000 To Balance off Uneauned Revenue Alc. $10,000 Cash $10,000 $10,000 $ 10,07 To cash Sondy Eyes fic $8,000 By Performer Expense $8,00 $8,00 $ 8,002

To cash VOITARIOS Tumbleweed Alk $5,000 By Performer Expense Vaata $$ $5,000 $ 5,00w $ 5,000 To Cash Advertising Expers. Alc. By Balance off $ 500 $500 $500 $500 To Cash Sprinkles tic $9,000 By Perfomer Expense $9,000 $9,00 $9,000 Salaries & Woges xpenas die To Cash Alc $3,800 By Balance clf $3,800 $3,800 $3,800

To Concession Revenue NOITANO SO T90.913a Tad Accounts Receivable All $750 By Balance off $750 $750 $750 To Balone cif Concession Revenue Alc. $1,500 Alc $750 By Account Receivable 9450 $1,500 $ 1500 KA

Trial Balance VEG TO Dr. Co. Cash Alo $28,950 $ 42,000 $27,000 $7,500 $10,000 Admission Revenue Alc Performer Expense Alc Accounts Payable Alc Unearned Revenue Alc Advertising Expense die Salaries & wages Expense Alc accounts Receivables Alc Concession Revenue Alc Land Alc Building Aic $ 500 $3,800 $750 $ 1,500 $22,000 $ 43,000 Equipment sic Common Slock AIC $ 16,000 $ 90,000