AP3-8A The Star-Lite Theater Inc was recently formed. It began operations in Mar
ID: 2350738 • Letter: A
Question
AP3-8A
The Star-Lite Theater Inc was recently formed. It began operations in March 2010. The Star-Lite is unique in that it will show only triple features of sequential theme movies. On March 1, the ledger of The Star-Lite showed: Cash $20,167; Land $42,167; Buildings (concession stand, projection room, ticket booth, and screen) $22,000; Equipment $16,000; Accounts Payable $16,167; and Common Stock $84,167. During the month of March the following events and transactions occurred.
Mar. 2 Rented the three Star Wars movies (Star Wars (R), The Empire Strikes Back, and The Return of the Jedi) to be shown for the first three weeks of March. The film rental was $10,431; $2,820 was paid in cash and $7,611 will be paid on March 10.
Mar 3. Ordered the first three Star Trek movies to be shown the last 10 days of March. It will cost $400 per night.
Mar 9. Received $9,676 cash from admissions.
Mar 10. Paid balance due on Star Wars movies rental and $2,600 on March 1 accounts payable.
Mar 11. Hired J. Carne to operate concession stand. Carne agrees to pay The Star-Lite Theater 15% of gross receipts, payable monthly.
Mar 12. Paid advertising expenses $950.
Mar 20. Received $8,092 cash from customers for admissions.
Mar 20. Received the Star Trek movies and paid rental fee of $4,351.
Mar 31. Paid salaries of $3,837.
Mar 31. Received statement from J. Carne showing gross receipts from concessions of $13,600 and the balance due to The Star-Lite of $2,040 for March. Carne paid half the balance due and will remit the remainder on April 5.
Mar 31. Received $21,919 cash from customers for admissions.
In addition to the accounts identified above, the chart of accounts includes: Accounts receivable, Admission Revenue, Concession Revenue, Advertising expense, Film rental expense, and Salaries Expense.
Journalize the March transactions. (If no entry is necessary, enter No entry for the account and 0 for the amount. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. If amounts are the same, list alphabetically.)
****** I need help on this part ***** Complete the trial balance on March 31, 2010. (If answer is zero please enter 0, do not leave any fields blank.)
Cash --------------------> Don't know debit and credit values here!!
Accounts Receivable -------------------> $1,020 for debit and $0 for credit
Land ----------------------> $42,167 for debt and $0 for credit
Buildings ----------------------> $22,000 for debt and $0 for credit
Equipment ----------------------> $16,000 for debit and $0 for credit
Accounts Payable ------------------> Don't know the values for debit and credit here!!!!
Common Stock -----------------------> $0 for debit and $84,167 for credit
Admission Revenue ---------------------> $0 for debit and $39,687 for credit
Concession Revenue --------------------------> $0 for debit and $2,040 for credit
Advertising Expense ---------------------------> $950 for debit and $0 for credit
Film Rental Expense ---------------------------> $14,782 for debit and $0 for credit
Salaries Expense ---------------------------------> $3,837 for debit and $0 for credit
Explanation / Answer
Cash a/c
Accounts Payble a/c
Accounts receivalbe/ Adnussuib income a/c
Advertising Expenses a/c
Salaries a/c
Rent a/c
Staff life Expenses a/c
Staff life income a/c
Trail Balance
Debit $
Credit $
DATE DEBIT $ CREDIT $ 31-Mar Cash 21919 Admission Income 21919 (Being admission income received) 2-Mar Rent Expenses 20862 Cash 13251 Rent Payble 7611 (Being Rent paid and payble) 31-Mar Cash 13600 Receipts form Start life 13600 (Being start life income received) 10-Mar Accounts payble 2600 Rent payble 7611 Cash 10211 (Being Accounts payble and rent payble expenses paid) 9-Mar Cash 9676 Admission Income 9676 (Being Admission income received) 20-Mar Cash 8092 Admission Income 8092 (Being admission income received) 20-Mar Rent 4351 Cash 4351 (Being rental fee paid) 31-Mar Salaries 3837 Cash 3837 (Being salaries paid) 31-Mar Start life 15% expenses 2040 Cash 1020 Expenses payble 1020 (Being expenses paid and payble) 12-Mar Advertising Expenses 950 Cash 950 (Being advertising expenses paid) 3-Mar No entry for order 0 11-Mar no entry 0