The Star Theater Corp. owned by Leo Baerga, will begin operations in March. The Star will be unique in that it will show only triple features of sequential theme movies. As of February 28, the ledger of Star 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. 311 Common Stock \(\$ 80,000\). During the month of March the following events and transactions occurred:

Mar. 2 Acquired 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 \(\$ 12,000 ; \$ 4,000\) was paid in cash and \(\$ 8,000\) will be paid on March 10 .

3 Ordered the first three Star Trek movies to be shown the last 10 days of March. It will cost \(\$ 400\) per night.

9 Received \(\$ 6,500\) cash from admissions.
10 Paid balance due on Star Wars movies rental and \(\$ 3,000\) on February 28 accounts payable.
11 Hired M. Brewer to operate concession stand. Brewer to pay Star Theater \(15 \%\) of gross receipts payable monthly.
12 Paid advertising expenses \(\$ 800\).
20 Received \(\$ 7,200\) cash from admissions 20 Received the Star Trek movies and paid the rental fee of \(\$ 4,000\).
31 Paid salaries of \(\$ 3,800\).
31 Received statement from M. Brewer showing gross receipts from concessions of \(\$ 8,000\) and the balance due to Star Theater of \(\$ 1,200\) for March. Brewer paid onehalf the balance due and will remit the remainder on April 5.
31 Received \(\$ 12,500\) cash from 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.
\section*{Instructions}

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

(b) Journalize the March transactions.

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

(d) Prepare a trial balance on March 31, 1996.