The Oldies Theater Inc. was recently formed. It began operations in March 2001.

The Oldies is unique in that it will show only triple features of sequential theme movies.

As of February 28, the ledger of The Oldies 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®, The Empire Strikes Back, and The Return of the Jedi) to be shown for the first three 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 $8,500 cash from admissions.

10 Paid balance due on Star Wars movies rental and $3,000 on February 28 accounts payable.

11 Hired M. Brewer to operate concession stand. Brewer agrees to pay The Oldies 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 The Oldies of $1,200 for March. Brewer paid half the balance due and will remit the remainder on April 5.

31 Received $18,500 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.

Instructions

(a) Using T accounts, enter the beginning balances to the ledger.

(b) Journalize the March transactions, including explanations.

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

(d) Prepare a trial balance on March 31, 2001.