CALCULATOR PRINTER VERSION BACK NEXT Problem 205A ad Video T

CALCULATOR PRINTER VERSION BACK NEXT 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 9Received $4,400 cash from admissions 0 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 Starr Theater of $750 ($5,000 × 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

Answer 1. Adjusting Journal Entry Date Particulars Dr. Amt. Cr. Amt. 2-Mar Rent Expense    3,500.00    Cash    1,400.00    Accounts Payable    2,100.00 (To record the rent expense) 3-Mar No Entry 9-Mar Cash    4,400.00 Service Revenue    4,400.00 (To record the cash recd from admission) 10-Mar Accounts Payable    3,800.00    Cash    3,800.00 (To record the cash paid) 11-Mar no entry 12-Mar Advertising Expense       900.00    Cash       900.00 20-Mar Cash    5,500.00 Service Revenue    5,500.00 (To record the cash recd from admission) 20-Mar Rent Expense    1,500.00     Cash    1,500.00 (To record the cash paid) 31-Mar Salaries & Wages Expense    2,600.00    Cash    2,600.00 (To record the salaries & wages expense) 31-Mar Cash    2,125.00 Accounts Receivable    2,125.00 Rent Expense       750.00    Rent Revenue    5,000.00 (To record the rent revenue) Answer 2. Cash Accounts Receivable Land Date Debit   Credit Balance Date Debit   Credit Balance Date Debit   Credit Balance Balance      3,050.00 Dr. Balance                   -   Dr. Balance    23,000.00 Dr. 2-Mar    1,400.00      1,650.00 Dr. 31-Mar    2,125.00      2,125.00 Dr. 9-Mar    4,400.00      6,050.00 Dr. 10-Mar    3,800.00      2,250.00 Dr. 12-Mar       900.00      1,350.00 Dr. 20-Mar    5,500.00      6,850.00 Dr. 20-Mar    1,500.00      5,350.00 Dr. 31-Mar    2,600.00      2,750.00 Dr. 31-Mar    2,125.00      4,875.00 Dr. Buildings Equipment Accounts Payable Date Debit   Credit Balance Date Debit   Credit Balance Date Debit   Credit Balance Balance    12,000.00 Dr. Balance    12,000.00 Dr. Balance      7,200.00 Cr. Dr. 2-Mar    2,100.00      9,300.00 Cr. 10-Mar    3,800.00      5,500.00 Cr. Owner\'s Capital Service Revenue Rent Revenue Date Debit   Credit Balance Date Debit   Credit Balance Date Debit   Credit Balance Balance    42,850.00 Cr. Balance                   -   Cr. Balance                   -   Cr.    42,850.00 Cr. 9-Mar    4,400.00      4,400.00 Cr. 31-Mar    5,000.00      5,000.00 Cr. 20-Mar    5,500.00      9,900.00 Cr. Advertising Expense Salaries & Wages Expense Rent Expense Date Debit   Credit Balance Date Debit   Credit Balance Date Debit   Credit Balance Balance                   -   Dr. Balance Dr. Balance                   -   Dr. 12-Mar       900.00          900.00 Dr. 31-Mar    2,600.00      2,600.00 Dr. 2-Mar    3,500.00      3,500.00 Dr.          900.00 Dr. 20-Mar    1,500.00      5,000.00 Dr. 31-Mar       750.00      5,750.00 Dr. Answer 3. STARR THEATRE Trial Balance For the Month ended Mar-31 Particulars Dr. Amt. Cr. Amt. Cash      4,875.00 Accounts Receivable      2,125.00 Land    23,000.00 Buildings    12,000.00 Equipment    12,000.00 Accounts Payable      5,500.00 Owner\'s Capital    42,850.00 Service Revenue      9,900.00 Rent Revenue      5,000.00 Advertising Expense          900.00 Salaries & Wages Expense      2,600.00 Rent Expense      5,750.00 Total    63,250.00    63,250.00