Question

In: Accounting

On February 28, 2021, Blossom Inc.’s general ledger showed Cash $15,000; Land $87,000; Buildings $79,000; Equipment...

On February 28, 2021, Blossom Inc.’s general ledger showed Cash $15,000; Land $87,000; Buildings $79,000; Equipment $19,000; Accounts Payable $13,000; Mortgage Payable $116,000; Common Shares $41,000; and Retained Earnings $30,000. 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: Blossom uses the account Rent Expense to record film rentals).
2 Hired M. Brewer to operate concession stand. Brewer agrees to pay Blossom 15% of gross receipts, payable on the last day of each month, for the right to operate the concession stand. (Hint: Blossom 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: Blossom 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 Blossom 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.

a) 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.)

(I will be posting part B & C once I am able to answer part A. Please stay in touch.)

Solutions

Expert Solution

SOLUTION:

DATE ACCOUNTS TITLE DEBIT CREDIT
MARCH1 RENT EXPENSE 27000
CASH 10000
ACCOUNTS PAYABLE 17000
(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 17000
CASH 17000
(TO RECORD PAID BALANCE DUE ON THE MOVIES RENTED ON MARCH1)
13 ACCOUNTS PAYABLE 13000
CASH 13000
(TO RECORD PAID THE ACCOUNTS PAYABLE OWING AT THE END OF FEBRUARY)
15 CASH 25500
FEES EARNED 25500
(TO RECORD SERVICE REVENUE ON CASH)
19 ADVERTISING EXPENSE 950
CASH 950
(TO RECORD ADVERTISING EXPENSE PAID)
20 RENT EXPENSE 3000
CASH 3000
(TO RECORD RENT EXPENSE)
23 SALARIES EXPENSE 4200
CASH 4200
(TO RECORD SALARIES EXPENSE PAID)
26 MORTAGAGE PAYABLE 1250
INTEREST EXPENSE 750
CASH 2000
(TO RECORD MORTAGAGE AND INTEREST PAID)
28 INCOME TAX EXPENSE 3000
CASH 3000
(TO RECORD INCOME TAX EXPENSE PAID)
30 CASH(2490*1/2) 1245
ACCOUNTS RECEIVABLE 1245
CONCESSION REVENUE 2490
(TO RECORD CONCESSION REVENUE)
31 CASH 25800
FEES EARNED 25800
(TO RECORD SERVICE REVENUE ON CASH)

THANK YOU!!


Related Solutions

On February 28, 2021, Crane Inc.’s general ledger showed Cash $18,000; Land $86,000; Buildings $77,000; Equipment...
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...
On February 28, 2018, Wildhorse Inc.’s general ledger showed Cash $ 14,900; Land $ 84,600; Buildings...
On February 28, 2018, Wildhorse Inc.’s general ledger showed Cash $ 14,900; Land $ 84,600; Buildings $ 76,300; Equipment $20,000; Accounts Payable $ 12,100; Mortgage Payable $ 117,400; Common Shares $ 40,400; and Retained Earnings $ 25,900. 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 $ 27,100. Of that amount, $ 10,100 was paid in cash and the remainder was...
Q3 / On July 31, 2018, the general ledger of Sandhill Inc. showed these balances: Cash...
Q3 / On July 31, 2018, the general ledger of Sandhill Inc. showed these balances: Cash $3,980; Accounts Receivable $1,490; Supplies $550; Equipment $4,970; Accounts Payable $4,090; Common Shares $3,500; and Retained Earnings $3,400. During August, the following transactions occurred: Aug. 2 Collected $1,190 of accounts receivable due from customers. 3 Received $1,300 for issuing common shares to new investors. 6 Paid $2,680 on accounts payable owing. 7 Earned fees of $6,500, of which $3,000 was collected in cash and...
The Cash account in the general ledger of Lyco Corporation showed a balance of $21,749 at...
The Cash account in the general ledger of Lyco Corporation showed a balance of $21,749 at December 31 (but prior to performing a bank reconciliation). The company's bank statement showed a balance of $22,000 at the same date. The only reconciling items consisted of: (1) a $5,000 deposit in transit, (2) a bank service charge of $200, (3) outstanding checks totaling $9,000, (4) a $3,000 check marked "NSF" from Susque Company, one of Lyco's customers, and (5) a check written...
At the beginning of September 2021, Stojanovic Distributing Company's ledger showed Cash $12,500, Merchandise Inventory $7,500,...
At the beginning of September 2021, Stojanovic Distributing Company's ledger showed Cash $12,500, Merchandise Inventory $7,500, and D. Stojanovic, Capital, $20,000. Stojanovic uses the perpetual inventory system and the earnings approach. During the month of September, the company had the following selected transactions: Record and post inventory transactions—perpetual system and earnings approach. Prepare partial income statement. Sept. 2 Purchased $13,500 of merchandise inventory from Moon Supply Co., terms 1/15, n/30, FOB destination. 4 The correct company paid $325 cash for...
At the beginning of September 2021, Stojanovic Distributing Company's ledger showed Cash $12,500, Merchandise Inventory $7,500,...
At the beginning of September 2021, Stojanovic Distributing Company's ledger showed Cash $12,500, Merchandise Inventory $7,500, and D. Stojanovic, Capital, $20,000. Stojanovic uses the perpetual inventory system and the earnings approach. During the month of September, the company had the following selected transactions: Record and post inventory transactions—perpetual system and earnings approach. Prepare partial income statement. Sept. 2 Purchased $13,500 of merchandise inventory from Moon Supply Co., terms 1/15, n/30, FOB destination. 4 The correct company paid $325 cash for...
At the beginning of September 2021, Stojanovic Distributing Company's ledger showed Cash $12,500, Merchandise Inventory $7,500,...
At the beginning of September 2021, Stojanovic Distributing Company's ledger showed Cash $12,500, Merchandise Inventory $7,500, and D. Stojanovic, Capital, $20,000. Stojanovic uses the perpetual inventory system and the earnings approach. During the month of September, the company had the following selected transactions: Record and post inventory transactions—perpetual system and earnings approach. Prepare partial income statement. Sept. 2 Purchased $13,500 of merchandise inventory from Moon Supply Co., terms 1/15, n/30, FOB destination. 4 The correct company paid $325 cash for...
On July 31, 2022, the general ledger of Sunland Legal Services Inc. showed the following balances:...
On July 31, 2022, the general ledger of Sunland Legal Services Inc. showed the following balances: Cash $3,520, Accounts Receivable $1,320, Supplies $440, Equipment $4,400, Accounts Payable $3,610, Common Stock $3,080, and Retained Earnings $2,990. During August, the following transactions occurred. Aug. 3 Collected $1,060 of accounts receivable due from customers. 5 Received $1,140 cash for issuing common stock to new investors. 6 Paid $2,380 cash on accounts payable. 7 Performed legal services of $5,720, of which $2,640 was collected...
On July 31, 2022, the general ledger of Sunland Legal Services Inc. showed the following balances:...
On July 31, 2022, the general ledger of Sunland Legal Services Inc. showed the following balances: Cash $3,520, Accounts Receivable $1,320, Supplies $440, Equipment $4,400, Accounts Payable $3,610, Common Stock $3,080, and Retained Earnings $2,990. During August, the following transactions occurred. Aug. 3 Collected $1,060 of accounts receivable due from customers. 5 Received $1,140 cash for issuing common stock to new investors. 6 Paid $2,380 cash on accounts payable. 7 Performed legal services of $5,720, of which $2,640 was collected...
Marin Company’s general ledger indicates a cash balance of $22,840 as of September 30, 2021. Early...
Marin Company’s general ledger indicates a cash balance of $22,840 as of September 30, 2021. Early in October Marin received a bank statement indicating that during September Marin had an NSF check of $2,000 returned to a customer and incurred service charges of $70. Marin also learned it had incorrectly recorded a check received from a customer on September 15 as $900 when in fact the check was for $990. Calculate Marin’s correct September 30, 2021, cash balance.Marin Company’s general...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT