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page 17. 3. Post the journal entries to the ledger. 4. Prepare a trial balance as of November 30, 20X1. NGE PROBLEMS PROBLEM SOLVING The Georgian Theater is a Victorian-style theater that operated profitably for many years. In recent years, however, it had started to lose money due to intense compe- tition from several multiscreen theaters that had opened in the area. The original owner made several unsuccessful attempts to sell the theater while it was still in operation. Finally, it was closed on January 14, 20X0, and has been vacant since. On April 2, 20X2, Jay Richards entered into a contract with the owner to purchase and restore the theater. He completed the following transactions during April: 20X2 Apr. 2 Jay transferred the balance of his savings account, $12,000, to a bank account for the business. 3 Using the value of his home as security, Jay borrowed $45,000 from a local bank by signing a 5-year note payable. Purchased the Georgian Theater for $175,000, paying $30,000 down with the balance on a 30-year mortgage note payable. Assets of the pur- chase are allocated as follows: building, $100,000; land, $40,000; pro- jection equipment, $20,000; concession equipment, $15,000. 5 Purchased office equipment on account, $6,000. Entered into a contract with a food vending company to run the con- cession stand. The contract calls for the concessionaire to pay rent of 10% of the monthly concession sales, with a minimum of $500, which was collected in advance. 5 Purchased office supplies for cash, $245. 6 Paid $2,000 to have all seats and carpets steam cleaned. 6 Paid for a full-page ad in a local newspaper, $900. 7 Opened the theater to the public by offering a free showing. 9 Paid for advertising leaflets, $300. 10 Paid miscellaneous expenses, $225. 12 Cash received from admissions for the week, $4,500. 15 Paid semimonthly wages, $2,540. 17 Purchased office supplies on account, $75. 19 Cash received from admissions for the week, $6,500. 21 Returned a defective printer ribbon (from the April 17 purchase) and received a credit of $12. 21 Purchased six video machines for use in the lobby, $24,500, paying $5,000 down with the balance on account. 23 Paid a personal bill using the business bank account, $40. 27 Cash received from admissions for the week, $7,200. Paradigm College Accounting . Chapter 3