Question

The Kingbird, Inc. opened on April 1. All facilities were completed on March 31. At this time, the ledger showed No. 101 Cash $7,360, No. 140 Land $10,640, No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $6,640, No. 157 Equipment $7,360, No. 201 Accounts Payable $3,360, No. 275 Mortgage Payable $8,640, and No. 311 Common Stock $20,000. During April, the following events and transactions occurred.

Apr. 2		Paid film rental of $1,170 on first movie.
3		Ordered two additional films at $1,080 each.
9		Received $2,250 cash from admissions.
10		Made $2,140 payment on mortgage and $1,480 for accounts payable due.
11		Kingbird, Inc. contracted with Dever Company to operate the concession stand. Dever is to pay 20% of gross concession receipts (payable monthly) for the rental of the concession stand.
12		Paid advertising expenses $230.
20		Received one of the films ordered on April 3 and was billed $1,080. The film will be shown in April.
25		Received $5,200 cash from admissions.
29		Paid salaries $1,500.
30		Received statement from Dever showing gross concession receipts of $2,500 and the balance due to The Kingbird, Inc. of $500 ($2,500 × 20%) for April. Dever paid one-half of the balance due and will remit the remainder on May 5.
30		Prepaid $1,050 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 Rent, No. 400 Service Revenue, No. 429 Rent Revenue, No. 610 Advertising Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

a. Enter the beginning balances in the ledger as of April 1.

b. Journalize the April transactions. Kingbird, Inc. records admission revenue as service revenue, rental of the concession stand as rent revenue, and film rental expense as rent expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

c. Post the April journal entries to the ledger. (Post entries in the order of journal entries presented in the previous part.)

d. Prepare a trial balance on April 30, 2019.

Answer 1