JarJar Theater Inc. opened on April 1. All facilities were completed on March 31. At this time, the ledger showed: No. 101 Cash $10,000; No. 140 Land $10,000; No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $8,000; No. 157 Equipment $6,000;. LO5 No. 201 Accounts Payable $2,000; No. 275 Mortgage Payable $9,000; and No. 311 Common Stock $23,000. During April, the following events and transactions occurred.

Apr. 2 Paid film rental of $1,000 on first movie.

3 Ordered two additional films at $500 each.

9 Received $2,100 cash from admissions.

10 Made $3,000 payment on mortgage and $500 on accounts payable.

11 Hired Tim Rowe to operate concession stand. Tim Rowe to pay JarJar Theater 16 percent of gross receipts payable monthly.

12 Paid advertising expenses $600.

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

25 Received $4,600 cash from admissions.

29 Paid salaries $1,900.

30 Received statement from Tim Rowe showing gross receipts of $1,500 and the balance due to JarJar Theater of $240 for April. Tim Rowe paid onehalf of the balance due and will remit the remainder on May 5.

30 Prepaid $800 rental on special film to be run in May.

In addition to the accounts identified above, the chart of accounts shows: No. 112 Accounts Receivable, No. 136 Prepaid Rentals, No. 405 Admission Revenue, No. 406 Concession Revenue, No. 610 Advertising Expense, No. 632 Film Rental Expense, and No. 726 Salaries Expense.

Instructions

(a) Enter the beginning balances in the ledger as of April 1. Insert a check mark (✓) in the reference column of the ledger for the beginning balance.

(b) Journalize the April transactions.

(c) Post the April journal entries to the ledger. Assume that all entries are posted from page 1 of the journal.

(d) Prepare a trial balance on April 30, 2004.

FINANCIAL REPORTING PROBLEM: Hilton Hotels Corporation