st, P2-5A 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 Building (concession stand, projection room, ticket booth, and screen) 8,000, No. 157 Equipmen 6,000, No. 201 Accounts Payable 2,000, No. 275 Mortgage Payable 8,000, and No. 31 Share Capital-Ordinary 20,000. During April, the following events and transactions occurred Apr. 2 Paid film rental of 800 on first movie. 3 9 10 Ordered two additional films at 1,000 each. Received 1,800 cash from admissions. Made 2,000 payment on mortgage and 1,000 for accounts payable due. 11 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 20 Paid advertising expenses 300. Received one of the films ordered on April 3 and was billed 1,000. The film will be shown in April. 25 Received 5,500 cash from admissions. 29 30 Paid salaries 1,600. Received statement from D. Zarle showing gross concession receipts of 1,200 and the balance due to The Classic Theater of 216 (1,200 x 18%) for April. Zarle paid one-half of the balance due and will remit the remainder on May 5. 30 Prepaid 1,300 rental on special film to be run in May.