Lake Theater, Inc., was recently begun by Frances Hill. All facilities were completed on March 31. At this time, the ledger showed: Cash \(\$ 6,000\); Land \(\$ 10,000\); Buildings (concession stand, projection room, ticket booth, and screen) \(\$ 8,000\); Equipment \(\$ 6,000\); Accounts Payable \(\$ 2,000\); Mortgage Payable \(\$ 8,000\); and Common Stock \(\$ 20,000\). During April, the following events and transactions occurred:

Apr. 2 Paid film rental of \(\$ 800\) on first movie.

3 Ordered two additional films at \(\$ 500\) each.

9 Received \(\$ 1,800\) cash from admissions.

10 Made \(\$ 2,000\) payment on mortgage and \(\$ 1,000\) on accounts payable.

11 Hired R. Thoms to operate concession stand. Thoms agrees to pay the Lake Theater \(17 \%\) of gross receipts payable monthly.

12 Paid advertising expenses, \(\$ 300\).

20 Received one of the films ordered on April 3 and was billed \(\$ 500\). The film will be shown in April.

25 Received \(\$ 4,200\) cash from admissions.

29 Paid salaries, \(\$ 1,600\).

30 Received statement from \(R\). Thoms showing gross receipts of \(\$ 1,000\) and the balance due to the Lake Theater of \(\$ 170\) for April. Thoms paid half of the balance due and will remit the remainder on May 5 .
30 Prepaid \(\$ 700\) rental on special film to be run in May.
In addition to the accounts identified above, the chart of accounts shows: Accounts Receivable, Prepaid Rentals, Admission Revenue, Concession Revenue, Advertising Expense, Film Rental Expense, Salaries Expense.
\section*{Instructions}

(a) Enter the beginning balances in the ledger \(\mathrm{T}\) accounts as of April 1.

(b) Journalize the April transactions

(c) Post the April journal entries to the ledger T accounts.

(d) Prepare a trial balance on April 30, 1998.