Problem Two: The Classic Theatre Ltd had the following general ledger normal balances on 1 April 2020: 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 $20,000. During April, the following events occurred. Apr. 2 Paid film rental of $800 on first movie. 3 Ordered two additional films at $1,000 each. 9 Received $1,800 cash from admissions. 10 Paid $2,000 on mortgage and $1,000 for accounts payable due. 11 Classic Theatre contracted with D. Zarle Company to operate the concession stand. Zarle will pay 18% of gross concession receipts (payable monthly) for the rental of the concession stand. 12 Paid advertising expenses $300. 20 Received one of the films ordered on 3 April and was billed $1,000. The film will be shown in April. Received $5,500 cash from admissions. 29 Paid salaries $1,600. Received statement from D. Zarle showing gross concession receipts of $1,200 and the balance due to The Classic Theatre of $216 ($1,200 x 18%) for April. Zarle paid one-half of the balance due and will remit the remainder on 5 May. 30 Paid $1,300 rental on special film to be run in May. 25 30 In addition to the accounts identified above, the chart of accounts contains 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. c) Post the April journal entries to the ledger and cross reference. The Cash account has been done for you below. Please submit this problem (problem 2(c) only) as your online submission. d) Prepare a trial balance on 30 April 2020. e) Prepare a residual analysis for the event of 11 April. f) Classic Theatre wants to hire an ACCTG 102 student to help with bookkeeping. The theatre's manager poses the following: "The terms debit and credit mean increase and decrease, respectively." You must determine if the statement is true or false and then explain why. Cash No. 101 Date Explanation Ref. Debit Credit Balance 01/04/2020 Balance 6,000 2 J1 5,200 9 1,800 7,000 10 J1 3,000 4,000 12 J1 300 3,700 25 J1 5,500 9,200 29 J1 1,600 7,600 J1 108 7,708 31 1,300 6,408 800 J1 30 30