The Lunt Theater, owned by Beth Saxena, will begin operations in March. The Lunt will be u
The Lunt Theater, owned by Beth Saxena, will begin operations in March. The Lunt will be unique in that it will show only triple features of sequential theme movies. As of March 1, the ledger of Lunt showed: No. 101 Cash $3,300, No. 140 Land $26,400, No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $11,000, No. 157 Equipment $11,000, No. 201 Accounts Payable $7,700, and No. 301 Owner's Capital $44,000. During the month of March, the following events and transactions occurred.
(a) (Check Trial balance Totals $72,180)
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. 726 Salaries and Wages Expense, and No. 729 Rent Expense.
(b)Enter the beginning balances in the ledger. Insert a check mark () in the reference column of the ledger for the beginning balance.
(c)Journalize the March transactions. Lunt records admission revenue as service revenue, rental of the concession stands as rent revenue, and film rental expense as rent expense.
(d)Post the March journal entries to the ledger. Assume that all entries are posted from page 1 of the journal.
(e) Prepare an unadjusted trial balance on March 31, 2014.