Problem 205A ad Video The Starr Theater owned by Meg Vargo w

Problem 2-05A a-d (Video) 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. 3 Ordered the Lord of the Rings movies to be shown the last 10 days of March. It will cost $150 per night 9 Received $4,400 cash from admissions. 10 Paid balance due on Indiana Jones movies rental and $1,700 on March 1 accounts payable. 11 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. 20 Received the Lord of the Rings movies and paid the rental fee of $1,500. 31 Paid salaries of $2,600. 31 Received statement from Adam Ladd showing gross receipts from concessions of $5,000 and the balance due to StamTheater of $750 ($5,000 x 15%) for March. Ladd paid one-half the balance due and will remit the remainder on April 5. 31 Received $9,000 cash from customers for admissions.

Solution

CASH Amount In $ Date Explanation Debit Credit Balance Mar-01 Opening balance 3050 3050 Mar-02 Indiana Jones Movie rentals for 3 weeks-part Payments 1400 1650 Mar-09 Cash received for admissions of service revenue 4400 6050 Mar-10 Indiana Jones Movie rentals for 3 weeks due Payments 2100 3950 Mar-10 Accounts Payables 1700 2250 Mar-12 Advertising Expenses Paid 900 1350 Mar-20 Admissions received 5500 6850 Mar-20 Received the lord of the rings movies paid rental for 10days 1500 5350 Mar-31 Salaries Paid 2600 2750 Mar-31 Adam Ladd paid for agreement of stand concession -half received 375 3125 Mar-31 Admissions received 9000 12125 Rent Revenue Date Explanation Debit Credit Balance Mar-31 Adam Ladd paid for agreement of stand concession -half received 750 750 Rent Expense Date Explanation Debit Credit Balance Mar-02 Indiana Jones Movie rentals for 3 weeks 3500 3500 Mar-20 Received the lord of the rings movies paid rental for 10days 1500 5000 Advertising Exp Date Explanation Debit Credit Balance Mar-12 Cash Paid 900 900 Salaries and Wages Expenses Date Explanation Debit Credit Balance Mar-31 cash 2600 2600 Accounts Payable Date Explanation Debit Credit Balance Mar-01 Balance 7200 7200 Mar-02 Indiana Jones Movie rentals for 3 weeks due on 10th 2100 9300 Mar-10 Indiana Jones Movie rentals for 3 weeks due Payments 2100 7200 Mar-10 Cash Paid 1700 5500 Accounts Receivable Date Explanation Debit Credit Balance Mar-31 Balance of rent revenue from Adam ladd-payable on apr-05 375 375 Service Revenue Date Explanation Debit Credit Balance Mar-09 Cash received for admissions of service revenue 4400 4400 Mar-20 Admissions received 5500 9900 Mar-31 Admissions received 9000 18900 Land Date Explanation Debit Credit Balance Mar-01 Balance 23000 23000 Buidlings Date Explanation Debit Credit Balance Mar-01 Balance 12000 12000 Equipment Date Explanation Debit Credit Balance Mar-01 Balance 12000 12000