Financial Accounting The Classic Theater opened on April 1. All facilities w

Financial Accounting

The Classic Theater opened on April 1. All facilities were completed on March 31. At this time the ledger showed: No. 101 Cash $7009 No. 140 Land
$8991 No. 145 Buildings (concession stand projection room ticket booth and screen) $6991 No. 157 Equipment $7009 No. 201 Accounts Payable $3009
No. 275 Mortgage Payable $6991 and No. 311 Common Stock $20000. During April the following events and transactions occurred.

Apr. 2 Paid film rental of $1023 on first movie.

3 Ordered two additional films at $1709 each.

9 Received $2798 cash from admissions.

10 Made $2452 payment on mortgage and $1430 for accounts payable due.

11 Classic Theater contracted with D. Zarle Company to operate the concession stand.

Zarle is to pay 16% of gross concession receipts (payable monthly) for the rental of the concession stand.

12 Paid advertising expenses $346.

20 Received one of the films ordered on April 3 and was billed $1709. The film will be shown in April.

25 Received $5289 cash from admissions.

29 Paid salaries $1144.

30 Received statement from D. Zarle showing gross concession receipts of $1900 and the balance due to The Classic Theater of $304 ($1900 X 16%) for
April. Zarle paid one-half of the balance due and will remit the remainder on May 5.

30 Prepaid $875 rental on special film to be run in May.

In addition to the accounts identified above the chart of accounts shows No. 112 Accounts Receivable No. 136 Prepaid Rent No. 400 Service Revenue No.
429 Rent Revenue No.610 Advertising Expense No. 726 Salaries and Wages Expense and No. 729 Rent Expense.

Instructions:

a. Enter the beginning balances in the ledger as of April 1. Insert a check mark (v) in the reference columns of the ledger for the beginning balance.

b. Journalize the April transactions.

c. Post the April journal entries to the ledger. Assume that all entries are posted from page 1 of the journal.

d. Prepare a trial balance on April 30 2008.