P2-5A The Lake Theater opened on April 1. All facilities were completed on March 31. At this time, the ledger showed: No. 101 Cash $6,000; No. 140 Land $10,000; No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $8,000; No. 157 Equipment $6,000; No. 201 Accounts Payable $2,000; No. 275 Mortgage Payable $8,000; and No. 311 Common Stock $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 $2,800 cash from admissions. 10 Made $2,000 payment on mortgage and $1,000 for accounts payable due. 11 Lake Theater contracted with R. Wynns Company to operate the concession stand. Wynns is to pay 17% of gross concession receipts (payable monthly) for the right to operate the concession stand. 12 Paid advertising expenses $500. 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 $2,000. 30 Received statement from R.Wynns showing gross concession receipts of $1,000 and the balance due to The Lake Theater of $170 ($1,000 17%) for April. Wynns 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. 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) Journalize the April transactions. (If there is no transaction, enter No entry as the description and 0 for the amount.) List amounts from largest to smallest eg 10, 5, 3, 2. If amounts are the same, list alphabetically.) Date Description/Account Debit Credit Apr. 2 (Paid film rental.) Apr. 3 (Ordered additional films.) Apr. 9 (Received cash for services provided.) Apr. 10 (Made payments on mortgage & acc. payable.) Apr. 11 (Contract to operate concession stand.) Apr. 12 (Paid advertising expenses.) Apr. 20 (Rented film on account.) Apr. 25 (Received cash for services provided.) Apr. 29 (Paid salaries expense.) Apr. 30 (Received cash & bal. on acc. for concession revenue.) Apr. 30 (Paid cash for future film rentals.) (b) Enter the beginning balances in the ledger as of April 1. Post the April journal entries to the ledger. Assume that all entries are posted from page 1 of the journal. (If answer is zero, please enter 0. Do not leave any fields blank.) Cash No. 101 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P 2 J1 9 J1 10 J1 12 J1 25 J1 29 J1 30 J1 30 J1 Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance Apr. 30 J1 Prepaid Rentals No. 136 Date Explanation Ref. Debit Credit Balance Apr. 30 J1 Land No. 140 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P Buildings No. 145 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P Equipment No. 157 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P 10 J1 20 J1 Mortgage Payable No. 275 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P 10 J1 Common Stock No. 301 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P Admission Revenue No. 405 Date Explanation Ref. Debit Credit Balance Apr. 9 J1 25 J1 Concession Revenue No. 406 Date Explanation Ref. Debit Credit Balance Apr. 30 J1 Advertising Expense No. 610 Date Explanation Ref. Debit Credit Balance Apr. 12 J1 Film Rental Expense No. 632 Date Explanation Ref. Debit Credit Balance Apr. 2 J1 20 J1 Salaries Expense No. 726 Date Explanation Ref. Debit Credit Balance Apr. 29 J1 (c) Prepare a trial balance on April 30, 2008. (If answer is zero, please enter 0. Do not leave any fields blank.)LAKE THEATER Trial Balance April 30, 2008 Debit Credit Cash $ $ Accounts Receivable Prepaid Rentals Land Buildings Equipment Accounts Payable Mortgage Payable Common Stock Admission Revenue Concession Revenue Advertising Expense Film Rental Expense Salaries Expense $ $