Answer:
The Palace Theater
1. Opening Ledger:
Date Accounts Debit Credit
101 Cash
April 1 Balance ✓ $6,000
Date Accounts Debit Credit
140 Land
April 1 Balance ✓ $12,000
Date Accounts Debit Credit
145 Buildings
April 1 Balance ✓ $8,000
Date Accounts Debit Credit
157 Equipment
April 1 Balance ✓ $6,000
Date Accounts Debit Credit
201 Accounts Payable
April 1 Balance ✓ $2,000
Date Accounts Debit Credit
275 Mortgage Payable
April 1 Balance ✓ $10,000
Date Accounts Debit Credit
311 Common Stock
April 1 Balance ✓ $20,000
2. Journal Entries:
Date Accounts Debit Credit
April 2. Prepaid Rent $800
Cash Account $800
To record the payment for film rental.
April 3 Cash Account $1,800
Service Revenue $1,800
To record cash receipt from admissions.
April 10 Mortgage Payable $2,000
Accounts Payable $1,000
Cash Account $3,000
To record payments on mortgage and accounts payable.
April 12 Advertising Expense $320
Cash Account $320
To record payment for advertising expenses.
April 20 Prepaid Rent $950
Accounts Payable $950
To record receipt of film on account.
April 25 Cash Account $5,200
Service Revenue $5,200
To record cash receipts from admissions.
April 29 Salaries $1,600
Cash Account $1,600
To record payment of salaries for the month.
April 30 Accounts Receivable $180
Rent Revenue $180
To record rent revenue due.
April 30 Cash Account $90
Accounts Receivable $90
To record the receipt from Dever for concessions.
April 30 Prepaid Rent $1,000
Cash Account $1,000
To record prepaid rental on special film.
3. 1. Ledger:
Date Accounts Debit Credit
101 Cash
March 31 Balance ✓ $6,000
April 2 Prepaid Rent $800
April 3 Service Revenue 1,800
April 10 Mortgage 2,000
April 10 Accounts Payable 1,000
April 12 Advertising expense 320
April 25 Service Revenue 5,200
April 29 Salaries 1,600
April 30 Accounts receivable 90
April 30 Prepaid Rental 1,000
April 30 Balance c/d $6,370
Date Accounts Debit Credit
140 Land
March 31 Balance ✓ $12,000
Date Accounts Debit Credit
145 Buildings
March 31 Balance ✓ $8,000
Date Accounts Debit Credit
157 Equipment
March 31 Balance ✓ $6,000
Date Accounts Debit Credit
201 Accounts Payable
March 31 Balance ✓ $2,000
April 10 Cash $1,000
April 20 Prepaid Rent 950
April 30 Balance c/d $1,950
Date Accounts Debit Credit
275 Mortgage Payable
March 31 Balance ✓ $10,000
April 10 Cash $2,000
April 30 Balance c/d $8,000
Date Accounts Debit Credit
311 Common Stock
March 31 Balance ✓ $20,000
Date Accounts Debit Credit
136 Prepaid Rent
April 30 Cash 1,000
Date Accounts Debit Credit
729 Rent Expense
April 2 Cash $800
April 20 Accounts Payable 950
April 30 Balance c/d $1,750
Date Accounts Debit Credit
400 Service Revenue
April 3 Cash $1,800
April 25 Cash 5,200
April 30 Balance c/d $7,000
Date Accounts Debit Credit
429 Rent Revenue
April 30 Accounts receivable 180
Date Accounts Debit Credit
112 Accounts Receivable
April 30 Concessions $180
April 30 Cash $90
April 30 Balance c/d $90
Date Accounts Debit Credit
610 Advertising Expenses
April 12 Cash $320
Date Accounts Debit Credit
726 Salaries Expenses
April 29 Cash $1,600
4. Trial Balance on April 30, 2015:
Accounts Debit Credit
Cash $6,370
Land 12,000
Buildings 8,000
Equipment 6,000
Accounts Payable $1,950
Mortgage Payable 8,000
Common Stock 20,000
Prepaid Rent 1,000
Rent Expense 1,750
Service Revenue 7,000
Rent Revenue 180
Accounts Receivable 90
Advertising 320
Salaries 1,600
Total $37,130 $37,130
Explanation:
a) Data
Ledger Balances on March 31:
No. 101 Cash $6,000
No. 140 Land $12,000
No. 145 Buildings $8,000
No. 157 Equipment $6,000
No. 201 Accounts Payable $2,000
No. 275 Mortgage Payable $10,000
No. 311 Common Stock $20,000
