Question

On February 28, 2021, Crane Inc.’s general ledger showed Cash $18,000; Land $86,000; Buildings $77,000; Equipment $25,000; Accounts Payable $14,000; Mortgage Payable $122,000; Common Shares $41,000; and Retained Earnings $29,000. During the month of March, the following transactions occurred:

Mar.	1		Received three movies to be shown during the first three weeks of March. The film rental was $27,000. Of that amount, $10,000 was paid in cash and the remainder was on account. (Hint: Crane uses the account Rent Expense to record film rentals).
	2		Hired M. Brewer to operate concession stand. Brewer agrees to pay Crane 15% of gross receipts, payable on the last day of each month, for the right to operate the concession stand. (Hint: Crane uses the account Concession Revenue to record concession receipts earned.)
	5		Ordered three additional movies, to be shown the last 10 days of March. The film rental cost will be $300 per night.
	12		Paid balance due on the movies rented on March 1.
	13		Paid the accounts payable owing at the end of February.
	15		Received $25,500 from customers for admissions for the first half of the month. (Hint: Crane uses the account Fees Earned to record revenue from admissions.)
	19		Paid advertising expenses, $950.
	20		Received the movies ordered on March 5 and paid rental fee of $3,000 ($300 × 10 nights).
	23		Paid salaries of $4,200.
	26		Paid $1,250 of the balance due on the mortgage, as well as $750 of interest on the mortgage.
	28		Paid $3,000 for the monthly income tax instalment.
	30		Received statement from M. Brewer, showing gross concession receipts of $16,600, and the balance due to Crane of $2,490 ($16,600 × 15%) for March. Brewer paid half of the balance due and will remit the remainder on April 5.
	31		Received $25,800 from customers for admissions for the past two weeks.

Journalize the March transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

Answer 1

Date	Accounts titles and explanation	Debit	Credit
March 1	Rent expense	27,000
	Cash		10,000
	Accounts payable		17,000
	(To record rent expense.)
2	No entry
	No entry
	(No journal entry would be required.)
5	No entry
	No entry
	(No journal entry would be required.)
12	Accounts payable	17,000
	Cash		17,000
	(To record paid balance due on the movies rented on March 1.)
13	Accounts payable	14,000
	Cash		14,000
	(To record paid the accounts payable owing at the end of February.)
15	Cash	25,500
	Fees Earned		25,500
	(To record service revenue on cash.)
19	Advertising expense	950
	Cash		950
	(To record advertising expense paid.)
20	Rent expense	3,000
	Cash		3,000
	(To record rent expense.)
23	Salaries expense	4,200
	Cash		4,200
	(To record salaries expense paid.)
26	Mortgage payable	1,250
	Interest expense	750
	Cash		2,000
	(To record mortage and interest paid.)
28	Income tax expense	3,000
	Cash		3,000
	(To record income tax expense paid.)
30	Cash (2490*1/2)	1,245
	Accounts receivable	1,245
	Concession Revenue		2,490
	(To record concession revenue.)
31	Cash	25,800
	Fees Earned		25,800
	(To record service revenue on cash.)