00 Paste B I U Merge & Center $ - % % ) .00 Conditional Format Formatting as Table Cell Styles T Format Sort & Filter A26 vf A B D E F G H 1 J L M N 0 8 6 9 10 1 In the early part of 2020, Rock'n'Blues Theater Inc. was formed and began construction and decoration on a suitable venue, so that operations could 2 begin in May 2020. The R'n'B will feature up-and-coming local bands and will be able to host larger concerts or smaller groups with customer dancing areas. 3 On May 1, 2020, R'n'B's ledger showed balances of Cash $21,000, Land $22,000, Buildings $43,000, Equipment $16,000, Accounts Payable $12,000, 4 and Common Stock $90,000. During the month of May, the following events and transactions occurred. 5 6 May 2 Hired a well-known regional band, Sandy Eyes, to perform at the opening on May 10th for $10,000. Paid $2,000 downpayment, with the balance on account. 7 3 Paid $4,500 on accounts payable. Received $9,900 cash in advance for admissions to the opening. 10 Paid balance due to Sandy Eyes for the performance. Collected another $10,000 in tickets sold at the door. 11 Contracted with R. Finkel to operate a concession stand. Finkel agrees to pay R'n'B 15% of gross receipts, payable monthly, for the rental of the concession stand. 11 12 Hired a local band, Tumbleweed, to play May 16th and May 17th for $5,000, payable at the end of service. 12 Paid advertising expenses $500. 13 16 Received $4,300 cash from customers for admissions. 17 Received $5,800 cash from customers for admissions. 17 Paid Tumbleweed for services. 16 20 Hired another local band, Sprinkles, to play four nights from May 27 through May 30th for $12,000. Paid $3,000 cash down, with the 17 balance to be paid when services are complete on May 30th. Received a total of $22,000 cash from customers for the four Sprinkles performances. Paid Sprinkles the balance due at completion of the final performance. Paid salaries of $3,800. 31 Finkel had gross receipts from concessions in May of $10,000, resulting in $1,500 ($10,000 x .15) due to R'n'B for May. Finkel paid half the balance 22 due and will remit the remainder on June 5. 14 14 15 18 30 19 30 20 31 21 23 24 In addition to the accounts identified above, the chart of accounts includes Accounts Receivable, Admissions Revenue, Advertising Expense, Concessions Revenue, 25 Performer Expense, Prepaid expenses, Salaries and Wages Expense, and Unearned Revenues. 26 27 a. Using T-accounts, enter the beginning balances at May 1, 2020, to the ledger. 28 b. Journalize the March transactions, including explanations. 29 C. Post the May journal entries to the ledger. 30 d. Prepare a trial balance on May 31, 2020. 31