Lights Out Theatre Ltd was recently formed. All facilities were completed on 31 March 2016. On 1 April, the ledger showed: (100) Cash $6000; (120) Land $10 000; (130) Buildings $8000; (140) Equipment $6000; (200) Accounts Payable $2000; (210) Mortgage Payable $8000; and (300) Share Capital $20 000. During April, the following events and transactions occurred:

In addition to the accounts identified above, the chart of accounts shows: (105) Accounts Receivable, (107) Prepaid Rentals, (400) Admission Revenue, (410) Candy Bar Revenue, (510) Advertising Expense, (520) Film Rental Expense, (530) Salaries Expense. 

Required

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

(b) Journalise the April transactions, including narrations. 

(c) Post the April journal entries to the ledger T accounts, prepared in part (a).

(d) Prepare a trial balance on 30 April 2016.

(e) Prepare a statement of profit or loss for April and a classified statement of financial position as at 30 April 2016.

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Apr. 23901 11 12 20 25 29 30 30 Paid film rental of $800 on first movie. Ordered two additional films at $700 each. Received $3800 cash from admissions. Made $2000 payment on mortgage and $1000 on accounts payable. Hired R. Thoms to operate a candy bar. Thoms agrees to pay Lights Out Theatre 17% of gross receipts, payable monthly. Paid advertising expenses, $300. Received one of the films ordered on 3 April and was invoiced $500. The film will be shown in April. Received $3200 cash from admissions. Paid salaries, $1600. Received statement from R. Thoms showing gross receipts of $1000 and the balance due to Lights Out Theatre of $170 for April. Thoms paid half of the balance due and will remit the remainder on 5 May. Prepaid $700 rental on special film to be run in May.