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The following independent events for Carta Vista Theatre Ltd. during the year ended November 30, 2021, require a transaction journal entry or an adjusting
The following independent events for Carta Vista Theatre Ltd. during the year ended November 30, 2021, require a transaction journal entry or an adjusting journal entry or both. The company adjusts its accounts annually 1 2. 3. 4 5. 7 On June 1, 2021, the theatre purchased vehicles for $81.000 cash. The vehicles' estimated useful life is five years and the company uses straight-line depreciation The theatre has eight plays each season. This year's season starts in October 2021 and ends in May 2022 (one play per month). Season tickets sell for $350. On October 1.420 season tickets were sold for the 2021-2022 season. The theatre credited Deferred Revenue for the full amount received on October 1 and uses a Ticket Revenue account to record revenue earned from season tickets. Supplies on hand amounted to $950 at the beginning of the year. On February 16, additional Supplies were purchased for cash at a cost of $1,970. At the end of the year, a physical count showed that supplies on hand amounted to $470. On June 1.2021. the theatre borrowed $102.000 from the Bank of Montreal at an interest rate of 0%. The principal is to be repaid in one year. The interest is payable on the first day of each following month, and was last paid on November 1 The Carla Vista Theatre rents a portion of its facilities for $370 a month to a local dance club that uses the space for rehearsals. On November 2, the dance club's treasurer made a mistake and accidentally sent a cheque for only $180 for the November rent. (Hint: Use the Deferred Revenue account to record the rent received in advance) The dance club's treasurer promised to send a cheque in December for the balance when she returned from vacation. On December 4, the theatre received a $190 cheque for the balance owing from November The total weekly payroll is $7,700, paid every Monday for employee salaries earned during a seven-day workweek running from Sunday to Saturday. Salaries were last paid (and recorded) on Monday November 29, and will be paid next on Monday December 6 November 30 falls on a Tuesday this year Upon reviewing its income tax calculations on November 30, the theatre noted that an additional $1.250 of income tax was owed. This additional amount was paid on December 14
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