Star Theater, Inc., was recently formed by Leo Baerga. It will begin operations in March. The Star will be unique in that it will show only triple features of sequential theme movies. As of February 28, the ledger of Star showed: Cash \(\$ 16,000\); Land \(\$ 42,000\); Buildings (concession stand, projection room, ticket booth, and screen) \(\$ 18,000\); Equipment \(\$ 16,000\); Accounts Payable \(\$ 12,000\); and Common Stock \(\$ 80,000\). During the month of March the following events and transactions occurred:

Mar. 2 Acquired the three Star Wars movies (Star Wars \({ }^{[R M]}\), The Empire Strikes Back, and The Return of the Jedi) to be shown for the first 3 weeks of March. The film rental was \(\$ 12,000 ; \$ 4,000\) was paid in cash and \(\$ 8,000\) will be paid on March 10 3 Ordered the first three Star Trek movies to be shown the last 10 days of March. It will cost \(\$ 400\) per night.

9 Received \(\$ 6,500\) cash from admissions.

10 Paid balance due on Star Wars movies rental and \(\$ 3,000\) on February 28 ac counts payable.
11 Hired M. Brewer to operate concession stand. Brewer agrees to pay Star Theater 15\% of gross receipts payable monthly.
12 Paid advertising expenses \(\$ 800\).
20 Received \(\$ 7,200\) cash from admissions.
20 Received the Star Trek movies and paid rental fee of \(\$ 4,000\).
31 Paid salaries of \(\$ 3,800\).
31 Received statement from M. Brewer showing gross receipts from concessions of \(\$ 8,000\) and the balance due to Star Theater of \(\$ 1,200\) for March. Brewer paid half the balance due and will remit the remainder on April 5.
31 Received \(\$ 12,500\) cash from admissions.
In addition to the accounts identified above, the chart of accounts includes: Accounts Receivable, Admission Revenue, Concession Revenue, Advertising Expense, Film Rental Expense, and Salaries Expense.
\section*{Instructions}

(a) Using \(\mathrm{T}\) accounts, enter the beginning balances to the ledger.

(b) Journalize the March transactions.

(c) Post the March journal entries to the ledger.

(d) Prepare a trial balance on March 31, 1998.