50.1K

Verified Solution

Link Copied!

The Starr Theater, Owned By Meg Vargo will begin operations in March.

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 $24,000. Buildings (concession stand, projection room, ticket booth, and screen) $12,000, Equipment $12,000, Accounts Payable $6.900, and Owner's Capital $44,050. 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 $3,000: $1.500 was paid in cash and $1,500 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 $200 per night. 9 Received $4,400 qash from admissions, 10 Paid balance due on Indiana Jones movies rental and $1,600 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 $800. 20 Received $5,500 cash from customers for admissions 20 Received the Lord of the Rings movies and paid the rental fee of $2,000. 31 Paid salaries of $3,200 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 $9.400 cash from customers for admissions, Enter the beginning balances in the ledger. No. 101 Balance Ref Debit Credit v No. 112 Balance Ref Debit Credit No. 140 Balance Ref Debit Credit Cash Date Explanation Mar. 1 Balance Accounts Receivable Date Explanation Mar. 1 Balance Land Date Explanation Mar. 1 Balance Buildings Date Explanation Mar. 1 Balance Equipment Date Explanation Mar. 1 Balance Accounts Payable Date Explanation Mar. 1 Balance Owner's Capital No. 145 Balance Ref Debit Credit No. 157 Balance Ref Debit Credit No. 201 Balance Ref Debit Credit No. 301 No. 301 Balance Ref Debit Credit No. 400 Balance Ref Debit Credit No. 429 Balance Ref Debit Credit Credit 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.610 Balance Ref Debit Credit No. 726 Balance Ref Debit Credit Credit No. 729 Balance Ref Debit Credit Mar. 1 Balance

Answer & Explanation Solved by verified expert

See Answer