Question

Problem 3-8A The Triquel Theater Inc. was recently formed. It began operations in March 2017. The Triquel is unique in that it will show only triple features of sequential theme movies. On March 1, the ledger of The Triquel showed Cash $18,800; Land $40,800; Buildings (concession stand, projection room, ticket booth, and screen) $22,000; Equipment $16,000; Accounts Payable $14,800; and Common Stock $82,800. During the month of March, the following events and transactions occurred: Mar. 2 Rented the first three Star Wars movies (Star Wars®, The Empire Strikes Back, and The Return of the Jedi) to be shown for the first three weeks of March. The film rental was $9,600; $1,100 was paid in cash and $8,500 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 $500 per night. 9 Received $10,400 cash from admissions. 10 Paid balance due on Star Wars movies' rental and $2,900 on March 1 accounts payable. 11 The Triquel Theater contracted with R. Lazlo to operate the concession stand. Lazlo agrees to pay The Triquel 15% of gross receipts, payable monthly, for the rental of the concession stand. 12 Paid advertising expenses $600. 20 Received $7,900 cash from customers for admissions. 20 Received the Star Trek movies and paid rental fee of $5,700. 31 Paid salaries of $3,700. 31 Received statement from R. Lazlo showing gross receipts from concessions of $10,200 and the balance due to The Triquel of $1,530 ($10,200 × .15) for March. Lazlo paid half the balance due for the rental of the concession stand and will remit the remainder on April 5. 31 Received $19,800 cash from customers for admissions.

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

2. Post the March journal entries to the ledger. (Post entries in the order of information presented in the question.)

3. Prepare a trial balance on March 31, 2017.

Answer 1

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