1. The Classic Theater opened on April 1. All facilities were completed on March 31. At this time, the ledger showed Cash $6,000, Land $10,000, Buildings (concession stand, projection room, ticket booth, and screen) $8,000, Equipment $6,000, Accounts Payable $2,000, Mortgage Payable $8,000, and Share CapitalOrdinary $20,000. During April, the following events and transactions occurred.

Apr. 2 Paid film rental of $800 on first movie.

3 Ordered two additional films at $1,000 each.

9 Received $1,800 cash from admissions.

10 Made $2,000 payment on mortgage and $1,000 for accounts payable due.

11 Classic Theater contracted with D. Zarle Company to operate the concession stand. Zarle is to pay 18% of gross concession receipts (payable monthly) for the rental of the concession stand.

12 Paid advertising expenses $300.

20 Received one of the films ordered on April 3 and was billed $1,000. The film will be shown in April.

25 Received $5,200 cash from admissions.

29 Paid salaries $1,600.

30 Received statement from D. Zarle showing gross concession receipts of $1,000 and the balance due to The Classic Theater of $180 ($1,000 3 18%) for April. Zarle paid one-half of the balance due and will remit the remainder on May 5.

30 Prepaid $900 rental on special film to be run in May.

Required:

a) Prepare journal entries (7 points)

b) Prepare Income statement from the results of transactions (5 points)

c) Prepare Balance sheet (5 points)

Please explain all steps detally.Explain to me how and with the help of which rule did you solve this exercise?Answer all questions.