Prepare Financial statement.

The Classic Theater Ltd$.$ 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$.311$ Share Capital$-$Ordinary $20,000.$ During April, the following events and transactions occurred.

$2^{nd}$ Apr Paid film rental of $800$ on first movie.

$3^{rd}$ Apr Ordered two additional films at $1,000$ each.

$9^{th}$ Apr Received $1,800$ cash from admissions.

${10}^{th}$ Apr Made $2,000$ payment on mortgage and $1,000$ for accounts payable due.

${11}^{th}$ Apr 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.

${12}^{th}$ Apr Paid advertising expenses $300.$

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

${25}^{th}$ Apr Received $5,500$ cash from admissions.

${29}^{th}$ Apr Paid salaries $1,600.$

${30}^{th}$ Apr Received statement from D$.$ Zarle showing gross concession receipts of $1,200$ and the balance due to The Classic Theater of $216(1,20018\%)$ for April.

Zarle paid one$-$half of the balance due and will remit the remainder on May $5.$

${30}^{th}$ Apr Prepaid $1,300$ 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 Rent, No$.400$ Service Revenue, No$.429$ Rent Revenue, No$.610$ Advertising Expense, No$.726$ Salaries and Wages Expense, and No$.729$ Rent Expense.

Instructions

Preparation of the Financial Statements Use accounting cycle to complete this project. The completed Excel spreadsheet should be submitted

$($a$)$ Enter the beginning balances in the ledger as of April $1.$ Insert a check mark $()$ in the reference column of the ledger for the beginning balance.

$($b$)$ Journalize the April transactions.

$($c$)$ Post the April journal entries to the ledger. Assume that all entries are posted from page $1$ of the journal.

$($d$)$ Prepare a trial balance, income statement, owner's equity and balance sheet on April $30,2017$

$($e$)$ Analysis of the income statement and balance sheet.