P2-5A The Lake Theater opened on April 1. All facilities were completed on March 31.

At this time, the ledger showed: No. 101 Cash $6,000; No. 140 Land $10,000; No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $8,000; No. 157 Equipment $6,000; No. 201 Accounts Payable $2,000; No. 275 Mortgage Payable $8,000; and No. 311 Common Stock $20,000. During April, the following events and transactions occurred. Apr. 2 3 9 10 11 12 20 25 29 30 30 Paid film rental of $800 on first movie. Ordered two additional films at $1,000 each. Received $2,800 cash from admissions. Made $2,000 payment on mortgage and $1,000 for accounts payable due. Lake Theater contracted with R. Wynns Company to operate the concession stand. Wynns is to pay 17% of gross concession receipts (payable monthly) for the right to operate the concession stand. Paid advertising expenses $500. Received one of the films ordered on April 3 and was billed $1,000. The film will be shown in April. Received $5,200 cash from admissions. Paid salaries $2,000. Received statement from R.Wynns showing gross concession receipts of $1,000 and the balance due to The Lake Theater of $170 ($1,000 17%) for April. Wynns paid one-half of the balance due and will remit the remainder on May 5. Prepaid $900 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 Rentals, No. 405 Admission Revenue, No. 406 Concession Revenue, No. 610 Advertising Expense, No. 632 Film Rental Expense, and No. 726 Salaries Expense. Instructions (a) Journalize the April transactions. (If there is no transaction, enter No entry as the description and 0 for the amount.) List amounts from largest to smallest eg 10, 5, 3, 2. If amounts are the same, list alphabetically.) Date Apr. 2 Description/Account Debit Credit

(Paid film rental.)

Apr. 3

(Ordered additional films.) Apr. 9

(Received cash for services provided.)

Apr. 10

(Made payments on mortgage & acc. payable.)

Apr. 11


(Contract to operate concession stand.) Apr. 12

(Paid advertising expenses.)

Apr. 20

(Rented film on account.)

Apr. 25

(Received cash for services provided.)

Apr. 29

(Paid salaries expense.)

Apr. 30

(Received cash & bal. on acc. for concession revenue.)

Apr. 30

(Paid cash for future film rentals.)

(b) Enter the beginning balances in the ledger as of April 1. Post the April journal entries to the ledger. Assume that all entries are posted from page 1 of the journal. (If answer is zero, please enter 0. Do not leave any fields blank.) Cash Date Apr. 1 2 9 10 12 25 29 30 30 Accounts Receivable

Explanation Balance

Ref. J1 J1 J1 J1 J1 J1 J1 J1

Debit

Credit

No. 101 Balance

No. 112

Date Apr. 30

Explanation

Ref. J1 Ref. J1

Debit

Credit

Balance

Debit

Credit

Prepaid Rentals Date Explanation Apr. Land Date Apr. 1 30 Explanation Balance

No. 136 Balance

Debit

Credit

Ref. Ref. Ref. Ref. J1 J1 Ref. J1 Ref. Ref. J1 J1 Ref. J1 Ref. J1 Ref. J1 J1 Ref. J1

No. 140 Balance

Debit Credit

Buildings Date Explanation Apr. 1 Balance Equipment Date Explanation Apr. 1 Balance Accounts Payable Date Explanation Apr. 1 10 20 Mortgage Payable Date Explanation Apr. 1 10 Common Stock Date Explanation Apr. 1 Balance Admission Revenue Date Explanation Apr. 9 25 Concession Revenue Date Explanation Apr. 30 Advertising Expense Date Explanation Apr. 12 Film Rental Expense Date Explanation Apr. 2 20 Salaries Expense Date Explanation Apr. 29 Balance Balance

No. 145 Balance

Debit Credit

No. 157 Balance

Debit Credit

No. 201 Balance

Debit

Credit

No. 275 Balance

Debit

Credit

No. 301 Balance

Debit Credit

No. 405 Balance

Debit

Credit

No. 406 Balance

Debit

Credit

No. 610 Balance

Debit

Credit

No. 632 Balance

Debit

Credit

No. 726 Balance

(c) Prepare a trial balance on April 30, 2008. (If answer is zero, please enter 0. Do not leave any fields blank.)

LAKE THEATER Trial Balance April 30, 2008 Debit Cash Accounts Receivable Prepaid Rentals Land Buildings Equipment Accounts Payable Mortgage Payable Common Stock Admission Revenue Concession Revenue Advertising Expense Film Rental Expense Salaries Expense $ $ Credit $