The Russo Theater, owned by Alan Russo, will begin operations in March. The Russo will be unique

Question:

The Russo Theater, 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 March 1, the ledger of Russo showed No. 101 Cash $8,000, No. 140 Land $21,000, No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $10,000, No. 157 Equipment $8,000, No. 201 Accounts Payable $7,000, and No. 311 Common Stock $40,000. During the month of March, the following events and transactions occurred.

Mar. 2 Rented the three Indiana Jones movies to be shown for the first 3 weeks of March. The film rental was $3,500; $1,000 was paid in cash and $2,500 will be paid on March 10.

3 Ordered the Lord of the Rings movies to be shown the last 10 days of March. It will cost $240 per night.

9 Received $4,000 cash from admissions.

10 Paid balance due on Indiana Jones movies rental and $1,600 on March 1 accounts payable.

11 Russo Theater contracted with M. Brewer to operate the concession stand.

Brewer is to pay 15% of gross concession receipts (payable monthly) for the right to operate the concession stand.

12 Paid advertising expenses $450.

20 Received $5,000 cash from customers for admissions.

20 Received the Lord of Rings movies and paid the rental fee of $2,400.

31 Paid salaries of $2,500.

31 Received statement from M. Brewer showing gross receipts from concessions of $5,000 and the balance due to Russo Theater of $750 ($5,000 x 15%) for March.

Brewer paid one-half the balance due and will remit the remainder on April 5.

31 Received $9,000 cash from customers for admissions.

In addition to the accounts identified above, the chart of accounts includes No. 112 Accounts Receivable, No. 400 Service Revenue, No. 429 Rent Revenue, No. 610 Advertising Expense, No. 729 Rent Expense, and No. 726 Salaries and Wages Expense.

Instructions

(a) Enter the beginning balances in the ledger. Insert a check mark (✓) in the reference column of the ledger for the beginning balance.

(b) Journalize the March transactions.

(d) Prepare a trial balance on March 31, 2014.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...