The Three-Peat Theater Inc. was recently formed. It began operations in March and prepare a trial balance. 2007. The Three-Peat is unique in that it will show only triple features of sequential theme

(SO 3, 5, 6, 7, 8) movies. On March 1, the ledger of The Three-Peat showed: Cash $16,000; Land $38,000;

[GLS] Buildings (concession stand, projection room, ticket booth, and screen) $22,000; 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 Rented 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; $2,000 was paid in cash and $10,000 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 $9,200 cash from admissions.

Paid balance due on Star Wars movies rental and $2,600 on March 1 accounts payable.

11 Hired J. Bybee to operate the concession stand. Bybee agrees to pay The Three-Peat Theater 15% of gross receipts, payable monthly.

12 Paid advertising expenses $900. .

20 Received $7,100 cash from customers for admissions.

20 Received the Star Trek movies and paid rental fee of $4,000.

31 Paid salaries of $3,800.

31 Received statement from J. Bybee showing gross receipts from concessions of $9,000 and the balance due to The Three-Peat of $1,350 for March.

Bybee paid half the balance due and will remit the remainder on April 5.

31 Received $20,000 cash from customers for 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, 2007.