Question 3 The Russo Theatre, owned by Alan Russo, will begin operations in March. The Russo will be unique in that it will show only triple features of sequential theme movies. As of 1 March, the ledger of Russo showed: No. 101 Cash $16,000; No. 140 Land $42,000; No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $18,000; No. 157 Equipment $16,000; No. 201 Accounts payable $12,000; and No. 301 A. Russo, capital $80,000. During the month of March the following events and transactions occurred Mar 2 Rented the three Star Wars movies (Star Wars, The Empire Strikes Back, and The Return of the Jedi) to be shown for the first 3 weeks of March. The film rental was $9,000; $3,000 was paid in cash and $6,000 will be paid on March 10 Mar. 3 Ordered the first three Star Trek movies to be shown for the last 10 days of March. It will cost $300 per night. Mar. 9 Received $6,500 cash from admissions Mar. 10 Paid balance due on Star Wars movies rental and $3,000 on March 1 accounts payable Mar. 11 Russo Theatre contracted with M. Brewer Company to operate the concession stand. Brewer is to pay 10% of gross concession receipts (payable monthly) for the right to operate the concession stand Mar. 12 Paid advertising expenses $800 Mar. 20 Received $7,200 cash from customers for admissions. Mar. 20 Received the Star Trek movies and paid the rental fee of $3,000 Mar. 31 Paid salaries of $4,800 Mar 31 Received statement from M. Brewer showing gross receipts from concessions of $8,000 and the balance due to Russo Theatre of S800 ($8,000 10%) for March. Brewer paid onehalf the balance due and will remit the remainder on 5 April Mar. 31 Received $12,000 cash from customers for admissions In addition to the accounts identified above, the chart of accounts includes: No. 112 Accounts receivable, No. 405 Admission revenue, No. 406 Concession revenue, No. 610 Advertising expense, No. 632 Film rental expense, and No. 726 Salaries expense A. Russo, capital No. 301 Date Explanation Ref. Debit Credit Balance Mar. 1 Balance Admission revenue No. 405 Date Explanation Ref. Debit Credit Balance Mar. 9 J1 20 J1 31 J1 Concession revenue No. 406 Date Explanation Ref. Mar. 31 Advertising expense Debit Credit Balance J1 No. 610 Date Explanation Ref. Mar. 12 Film rental expense Debit Credit Balance J1 No. 632 Date Explanation Ref. Debit Credit Balance Mar. 2 JI 20 JI Salaries expense No. 726 Date Explanation Ref. Debit Credit Balance Mar. 31 J1 Accounts receivable No. 112 Credit Date Explanation Ref. Mar. 31 Land Debit Balance JI No. 140 Date Explanation Ref. Debit Credit Balance Mar. 1 Balance Buildings No. 145 Date Explanation Ref. Debit Credit Balance Mar. 1 Balance Equipment No. 157 Date Explanation Ref. Debit Credit Balance Mar. 1 Balance Accounts payable No. 201 Date Explanation Ref. Debit Credit Balance Mar. 1 Balance JI 10 JI A. Russo, capital No. 301 Date Explanation Ref. Debit Credit Balance Mar. 1 Balance Post the March journal entries to the ledger. Assume that all entries are posted from page 1 of the Post entries in the order of journal entry presented in the previous part.) Cash No. 101 Date ExplanationRef. Debit Credit Balance Mar. 1 Balance JI J1 10 JI 12 J1 20 JI 20 31 JI 31 31 JI Accounts receivable No. 112 Date Explanation Ref. Debit Credit Balance Mar. 31 JI
