The Lake Theater is owned by Tony Carpino. 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. 301 Tony Carpino, Capital $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 entry, then enter No Entry for the Description
and 0 for the amount. List multiple entries in descending order of amount. If amounts are the
same, list alphabetically.)
Date
Apr. 2
Apr. 3
Apr. 9
Apr. 10
Apr. 11
Apr. 12
Apr. 20
Apr. 25
Description/Account
Film Rental Expense
Cash
(Paid film rental.)
No Entry
No Entry
(Ordered additional films.)
Cash
Admission Revenue
(Received cash for services provided.)
Mortgage Payable
Accounts Payable
Cash
(Made payments on mortgage & acc. payable.)
No Entry
No Entry
(Contract to operate concession stand.)
Advertising Expense
Cash
(Paid advertising expenses.)
Film Rental Expense
Accounts Payable
(Rented film on account.)
Cash
Admission Revenue
Debit
Credit
800
800
0
0
2,800
2,800
2,000
1,000
3,000
0
0
500
500
1,000
1,000
5,200
5,200
Apr. 29
Apr. 30
Apr. 30
(Received cash for services provided.)
Salaries Expense
Cash
(Paid salaries expense.)
Accounts Receivable
Cash
Concession Revenue
(Received cash & bal. on acc. for concession revenue.)
Prepaid Rentals
2,000
2,000
85
85
170
900
Cash
900
(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
Explanation
Apr. 1
Balance
2
9
10
12
25
29
30
30
Accounts Receivable
Date
Explanation
Apr. 30
Prepaid Rentals
Date
Explanation
Apr. 30
Land
Date
Explanation
Apr. 1
Balance
Buildings
Date
Explanation
Apr. 1
Balance
Equipment
Date
Explanation
Apr. 1
Balance
Accounts Payable
Date
Explanation
Apr. 1
Balance
10
20
Mortgage Payable
Date
Explanation
Apr. 1
Balance
10
Tony Carpino, Capital
Date
Explanation
Apr. 1
Balance
Admission Revenue
Date
Explanation
Apr. 9
25
Ref.

J1
J1
J1
J1
J1
J1
J1
J1
Debit
Credit
Ref.
J1
Debit
Ref.
J1
Debit
Ref.

Debit
Credit
Ref.

Debit
Credit
Ref.

Debit
Credit
Ref.

J1
J1
Debit
Credit
Ref.

J1
Debit
Ref.

Debit
Ref.
J1
J1
Debit
0
2,800
0
0
5,200
0
85
0
800
0
3,000
500
0
2,000
0
900
Credit
85
0
Credit
900
0
1,000
0
0
1,000
Credit
2,000
0
Credit
Credit
0
0
2,800
5,200
No. 101
Balance
6,000
5,200
8,000
5,000
4,500
9,700
7,700
7,785
6,885
No. 112
Balance
85
No. 136
Balance
900
No. 140
Balance
10,000
No. 145
Balance
8,000
No. 157
Balance
6,000
No. 201
Balance
2,000
1,000
2,000
No. 275
Balance
8,000
6,000
No. 301
Balance
20,000
No. 405
Balance
2,800
8,000
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
Ref.
J1
Debit
Ref.
J1
Debit
Ref.
J1
J1
Debit
Ref.
J1
Debit
Credit
0
170
Credit
500
0
Credit
800
1,000
0
0
Credit
2,000
0
(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
Cash
Accounts Receivable
Prepaid Rentals
Land
Buildings
Equipment
Accounts Payable
Mortgage Payable
Tony Carpino, Capital
Admission Revenue
Concession Revenue
Advertising Expense
Film Rental Expense
Salaries Expense
Debit
$ 6,885
85
900
10,000
8,000
6,000
0
0
0
0
0
500
1,800
2,000
$ 36,170
Credit
$0
0
0
0
0
0
2,000
6,000
20,000
8,000
170
0
0
0
$ 36,170
No. 406
Balance
170
No. 610
Balance
500
No. 632
Balance
800
1,800
No. 726
Balance
2,000