A1Q5 Sequel Theatre, owned by Nadia Wood, is unique as it shows only movies that are part of a theme with sequels As at April 30, 2024, the ledger of Sequel Theatre showed the following Cash $18,900, Land $75,000, Buildings $69,800, Equipment $17,000, Accounts Payable $4,990, Mortgage Payable $106,300, and N Wood, Capital $69,410 In May, the following events and transaction occurred May 1 Rented the first four Harry Potter movies, to be shown in the first two weeks of May The film rental was $25,000 Of that amount, $10,784 was paid in cash and the balance will be paid on May 10 2 Hired M Brewer to operate the concession stand Brewer agreed to pay Sequel Theatre 15 of gross concession receipts, on the last day of each month, for the right to operate the concession stand 7 Paid advertising expenses, $1,090 10 Received $35,940 cash from customers for admission 10 Paid the balance due from the May 1 movie rental transaction 15 Received the final four Harry Potter movies to be shown in the last two weeks of May The film rental cost was $28,600 Paid $14,300 cash and the balance will be paid on June 1 25 Paid the accounts payable owing at the end of April 30 Paid salaries of $6,230 31 Received statement from Brewer showing gross receipts from concessions of $27,700 and the balance due to Sequel Theatre of $4,155 ($27,70015 ) for May Brewer paid $2,370 of the balance due and will pay the ret on June 5 31 Received $41,800 cash from admissions 31 Made a $1,790 mortgage payment Of this amount, $1,185 is a principal payment, and $605 is interest on the mortgage In addition to the accounts identified above, Sequel Theatres ledger includes the following Accounts Receivable Admission Revenue Concession Revenue Advertising Expense Film Rental Expense Interest Expense and Salaries Expense Instructions A ) Journalize the May transactions B ) Enter the beginning balances in the ledger as at May 1 Use the ledger format shown in Illustration 2 18 of your textbook C ) Post the May journal entries to the ledger D ) Prepare a trial balance at the end of May A friend of your is considering buying Sequel Theatre from the current owner Using the information in the trial balance, comment on whether or not this may be a sound company for your fried to purchase

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A1Q5 Sequel Theatre, owned by Nadia Wood, is unique as it shows only movies that are part of a theme with sequels. As at April

A1Q5

Sequel Theatre, owned by Nadia Wood, is unique as it shows only movies that are part of a theme with sequels. As at April 30, 2024, the ledger of Sequel Theatre showed the following: Cash $18,900, Land $75,000, Buildings $69,800, Equipment $17,000, Accounts Payable $4,990, Mortgage Payable $106,300, and N. Wood, Capital $69,410. In May, the following events and transaction occurred:

May	1	Rented the first four Harry Potter movies, to be shown in the first two weeks of May. The film rental was $25,000. Of that amount, $10,784 was paid in cash and the balance will be paid on May. 10.
	2	Hired M. Brewer to operate the concession stand. Brewer agreed to pay Sequel Theatre 15% of gross concession receipts, on the last day of each month, for the right to operate the concession stand.
	7	Paid advertising expenses, $1,090.
	10	Received $35,940 cash from customers for admission.
	10	Paid the balance due from the May 1 movie rental transaction.
	15	Received the final four Harry Potter movies to be shown in the last two weeks of May. The film rental cost was $28,600. Paid $14,300 cash and the balance will be paid on June 1.
	25	Paid the accounts payable owing at the end of April.
	30	Paid salaries of $6,230.
	31	Received statement from Brewer showing gross receipts from concessions of $27,700 and the balance due to Sequel Theatre of $4,155 ($27,70015%) for May. Brewer paid $2,370 of the balance due and will pay the ret on June 5.
	31	Received $41,800 cash from admissions.
	31	Made a $1,790 mortgage payment. Of this amount, $1,185 is a principal payment, and $605 is interest on the mortgage.

In addition to the accounts identified above, Sequel Theatres ledger includes the following: Accounts Receivable; Admission Revenue; Concession Revenue; Advertising Expense; Film Rental Expense; Interest Expense: and Salaries Expense.

Instructions

A.) Journalize the May transactions.

B.) Enter the beginning balances in the ledger as at May 1. Use the ledger format shown in Illustration 2.18 of your textbook.

C.) Post the May journal entries to the ledger.

D.) Prepare a trial balance at the end of May.

A friend of your is considering buying Sequel Theatre from the current owner. Using the information in the trial balance, comment on whether or not this may be a sound company for your fried to purchase.