Problem 2-5A (Part Level Submission) The Palace Theater opened on April 1. All facilities were completed on March 31. At this time, the ledger showed No. 101 Cash $7,390, No. 140 Land $10,610, No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $6,610, No. 157 Equipment $7,390, No. 201 Accounts Payable $3,390, No. 275 Mortgage Payable $8,610, and No. 311 Common Stock $20,000. During April, the following events and transactions occurred. Apr. 2 Paid film rental of $1,520 on first movie. 3 Ordered two additional films at $1,710 each. 9 Received $2,490 cash from admissions. 10 Made $2,370 payment on mortgage and $1,150 for accounts payable due. 11 Palace Theater contracted with Dever Company to operate the concession stand. Dever is to pay 18% of gross concession receipts (payable monthly) for the rental of the concession stand. 12 Paid advertising expenses $260. 20 Received one of the films ordered on April 3 and was billed $1,710. The film will be shown in April. 25 Received $6,600 cash from admissions. 29 Paid salaries $1,700. 30 Received statement from Dever showing gross concession receipts of $2,000 and the balance due to The Palace Theater of $360 ($2,000 18%) for April. Dever paid one-half of the balance due and will remit the remainder on May 5. 30 Prepaid $890 rental on special film to be run in May.