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On March 31, 2015, the Lake Theatre, Inc.’s general ledger showed Cash $6,000; Land $100,000; Buildings $80,000; Equipment $25,000; Accounts Payable $5,000; Mortgage Payable $125,000; Common Shares $50,000; and Retained Earnings $31,000. During the month of April, the following events and transactions occurred: Apr. 2 Paid film rental fee of $800 on first movie. 3 Paid advertising expenses, $620. 3 Hired Th oms Limited to operate concession stand. Thoms agrees to pay the Lake Th eatre 20% of gross concession receipts, payable monthly, for the right to operate the concession stand. 6 Ordered two additional fi lms at $750 each. 11 Received $1,950 from customers for admissions. 16 Paid $2,000 of the balance due on the mortgage. Also paid $850 in interest on the mortgage. 17 Paid $2,800 of the accounts payable. 20 Received one of the films ordered on April 6 and was billed $750. The film will be shown in April. 25 Received $7,300 from customers for admissions. 26 Paid salaries, $1,900. 27 Prepaid $700 rental fee on special film to be run in May. 30 Received statement from Thoms showing gross concession receipts of $5,600 and the balance due to the Lake Theatre of $1,120 ($5,600 3 20%) for April. Thoms paid half of the balance due and will remit the remainder on May 5. 30 Paid $1,000 for the monthly income tax instalment. Instructions (a) Using T accounts, enter the beginning balances in the ledger as at March 31. (b) Journalize the April transactions. (c) Post the April journal entries to the ledger. (d) Prepare a trial balance at April 30. View Solution:
On March 31 2015 the Lake Theatre Inc s general ledger

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