70.2K

Verified Solution

Link Copied!

3 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 $2,950, Land $25,000, Buildings (concession stand, projection room, ticket booth, and screen) $10,000, Equipment $10,000, Accounts Payable $7.500, and Owner's Capital $40.450. 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 $3,100; $1,500 was paid in cash and $1,600 will be paid on March 10. Ordered the Lord of the Rings movies to be shown the last 10 days of March. It will cost $180 per night. 9 Received $4,300 cash from admissions Paid balance due on Indiana Jones movies rental and $2,000 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 Paid advertising expenses $900, Received $5,500 cash from customers for admissions. 20 Received the Lord of the Rings movies and paid the rental fee of $1,800, Paid salaries of $2,700 Received statement from Adam Ladd showing gross receipts from concessions of $6,000 and the balance due to Starr Theater of $900 ($6,000 x 15%) for March. Ladd paid one-half the balance due and will remit the remainder on April 5, Received $9,200 cash from customers for admissions. 10 12 20 31 31 31 Enter the beginning balances in the ledger. No. 101 Balance Ref Debit Credit Credit 2950 2950 No. 112 Balance Ref Debit Credit 0 Ref Debit Credit Cash Date Explanation Mar. 1 Balance Accounts Receivable Date Explanation Mar Balance Land Date Explanation Mar. 1 Balance Buildings Date Explanation Mar Balance Equipment Date Explanation Mar. 1 Balance Accounts Payable Date Explanation 25000 Ref Debit Credit 10000 No. 140 Balance 25000 No. 145 Balance 10000 No. 157 Balance 10000 No. 201 Balance Ref Debit Credit 10000 Ref Debit Cre Mar1 Balm 7500 No. 201 Balance Credit Ref Debit 7500 7500 No. 301 Balance Credit Debit Ref 40450 40450 No. 400 Balance Rer Debit Credit 0 Accounts Payable Date Explanation Mar! Balance Owner's Capital Date Explanation Mar. 1 Balance Service Revenue Date Explanation Mar. 1 Balance Rent Revenue Date Explanation Mar. 1 Balance Advertising Expense Date Explanation Mar. 1 Balance Salaries and Wages Expense Date Explanation Mar. 1 Balance Rent Expense Date Explanation No. 429 Balance Ref Debit Credit No. 610 Balance Ref Debit Credit Credit No. 726 Rer Debit Credit Balance No. 729 Ref Debit Credit Balance Mar

Answer & Explanation Solved by verified expert

See Answer