Lake Theater Inc. opens 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 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 Common Stock \(\$ 20,000\). During April, the following events and transactions occurred.

Apr. 2 Paid film rental of \(\$ 800\) on first movie.

3 Ordered two additional films at \(\$ 500\) each.

9 Received \(\$ 1,800\) cash from admissions.

10 Made \(\$ 2,000\) payment on mortgage and \(\$ 1,000\) on accounts payable.

11 Hired R. Thoms to operate concession stand. Thoms to pay The Lake Theater \(17 \%\) of gross receipts payable monthly.

12 Paid advertising expenses \(\$ 300\).

20 Received one of the films ordered on April 3 and was billed \(\$ 500\). The film will be shown in April.

25 Received \(\$ 4,200\) cash from admissions.

29 Paid salaries \(\$ 1,600\).

30 Received statement from R. Thoms showing gross receipts of \(\$ 1,000\) and the balance due to The Lake Theater of \(\$ 170\) for April. Thoms paid one-half of the balance due and will remit the remainder on May 5.

30 Prepaid \(\$ 700\) rental on special film to be run in May.

In addition to the accounts identified above, the chart of accounts shows: No. 112 Accounts Receivable, No. 136 Prepaid Rentals, No. 405 Admission Revenue, No. 406 Concession Revenue, No. 610 Advertising Expense, No. 632 Film Rental Expense, and No. 726 Salaries Expense.

\section*{Instructions}

(a) Enter the beginning balances in the ledger as of April 1. Insert a check mark \((\sqrt{ })\) in the reference column of the ledger for the beginning balance.

(b) Journalize the April transactions.

(c) Post the April journal entries to the ledger. Assume that all entries are posted from page 1 of the journal.

(d) Prepare a trial balance on April \(30,1996\).