Question

edugen.wileyplus.com Reterences enth Canadian Edition by Kimmel, Weygandt, Kleso, Trenholm, Irvine, and Burnley ts System Select a Study Objective PRINTER VERSSON FULL SCREEN 1BACK NEXT P3-8A On February 28, 2018, Star Theatre Inc.'s general ledger showed Cash $15,000; Land S85,000; Buildings S77,000; Equipment $20,000; Accounts Payable S12,000; Mortgage Payable $118,000; Common Shares S40,000; and Retained Earnings $27,000. During the month of March, the following transactions occurred: Mar. 1 Received three movies to be shown during the first three weeks of March. The film rental was $27,000. Or that amount, $10,000 was paid in cash and the remainder was on account. (Hint: Star Theatre uses the account Rent Expense to record film rentals). 2 Hired M. Brewer to operate concession stand. Brewer agroes to pay Star Theatre 15% of gross receipts, payable on the last day of cach month, for the right to operate the concession stand. (Hint: Star Theatre uses the account Concession Revenue to record concession receipts caned.) 5 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 February. 15 Received $25,500 from customers for admissions for the first half of the month. (Hint: Star Theatre uses the account Foes Earned to record revenue from admissions.) 19 Paid advertising expenses, 5950. 20 Roceived the movies ordered on March 5 and paid rental fee of $3,000 (S300 x 10 nights). 12 13 23 Paid salaries of $4,200. 26 Paid S1,250 of the balance due on the mortgage, as well as $750 of interest on the mortgage. 28 Paid S3,000 for the monthly income tax instalment. 30 Received statement from M. Brewer, showing gross concession receipts of S16,600, and the balance due to Star Theatre of $2,490 (S16,600 x 15%) for March. Brewer paid half of the balance due and will remit the remainder on April 5. Received S25,800 from customers for admissions for the past two weeks. 31 Instructions (a) Journalize the March transactions (b) Set up Taccounts, enter the beginning balances in the ledger at February 28, and post the March jounal entries to the general ledger. (c) Prepare a trial balance at March 31. weySonsos A Rghts Reserved, A Division of bowie A Sens Jos Version 424.181 MacBook Air என் F3 FS F6 FN FB F10 2$ & 4 5 delete

Answer 1

a. In the books of Star Theater Inc. :

Date	Account Titles	Debit	Credit
		$	$
March 1	Rent Expense	27,000
	Cash		10,000
	Accounts Payable		17,000
March 2	No journal entry required	0	0
March 5	No journal entry required	0	0
March 12	Accounts Payable	17,000
	Cash		17,000
March 13	Accounts Payable	12,000
	Cash		12,000
March 15	Cash	25,500
	Fees Earned		25,500
March 19	Advertising Expense	950
	Cash		950
March 20	Rent Expense	3,000
	Cash		3,000
March 23	Salaries Expense	4,200
	Cash		4,200
March 26	Mortgage Payable	1,250
	Interest Expense	750
	Cash		2,000
March 28	Income Tax Expense	3,000
	Cash		3,000
March 30	Cash	1,245
	Accounts Receivable	1,245
	Concession Revenue		2,490
March 31	Cash	25,800
	Fees Earned		25,800

b.

Cash
Beg. bal.	15,000	3/5	10,000
3/15	25,500	3/12	17,000
3/30	1,245	3/13	12,000
3/31	25,800	3/19	950
		3/20	3,000
		3/23	4,200
		3/26	2,000
		3/28	3,000
End. bal.	15,395
Accounts Receivable
Beg. bal.	0
3/30	1,245
End. bal.	1,245
Land
Beg. bal.	85,000
End. bal.	85,000
Buildings
Beg. bal.	77,000
End. bal.	77,000
Equipment
Beg. bal.	20,000
End. bal.	20,000
Accounts Payable
3/12	17,000	Beg. bal.	12,000
3/13	12,000	3/1	17,000
		End. bal.	0
Mortgage Payable
3/26	1,250	Beg. bal.	118,000
		End. bal.	116,750
Common Shares
		Beg. bal.	40,000
		End. bal.	40,000
Retained Earnings
		Beg. bal.	27,000
Fees Earned
		3/15	25,500
		3/31	25,800
			51,300
Concession Revenue
		3/30	2,490
			2,490
Salaries Expense
3/23	4,200
	4,200
Advertising Expense
3/19	950
	950
Rent Expense
3/1	27,000
3/20	3,000
	30,000
Interest Expense
3/26	750
	750

c.

Star Theater Inc. Trial Balance March 31
Account Titles	Debit	Credit
	$	$
Cash	15,395
Accounts Receivable	1,245
Land	85,000
Buildings	77,000
Equipment	20,000
Accounts Payable		0
Mortgage Payable		116,750
Common Shares		40,000
Retained Earnings		27,000
Fees Earned		51,300
Concession Revenue		2,490
Salaries Expense	4,200
Rent Expense	30,000
Advertising Expense	950
Interest Expense	750
Income Tax Expense	3,000
Totals	$ 237,540	$ 237,540