Question

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 and will remit the remainder on April 5.
31		Received $19,800 cash from customers for admissions. I must do the 4 following things: Using T-accounts, enter the beginning balances to the ledger. Journalize the March transactions. The Triquel records admission revenue as service revenue, concession revenue as sales revenue, and film rental expense as rent expense. Post the March journal entries to the ledger .Prepare a trial balance on March 31, 2017.

Answer 1

Part 1 : First of all journal entries for the month of march need to be passed which is shown as follows:-

Journal Entries (Amount in $)

Date	Account Titles	Debit	Credit
Mar. 2	Rent expense	9,600
	Cash		1,100
	Accounts Payable (9,600-1,100)		8,500
Mar. 3	No entry required as this is not considered as accounting transaction
Mar. 9	Cash	10,400
	Service Revenue		10,400
Mar.10	Accounts Payable	8,500
	Cash		8,500
Mar.10	Accounts Payable	2,900
	Cash		2,900
Mar.11	No entry required as this is not considered as accounting transaction
Mar.12	Advertising Expense	600
	Cash		600
Mar.20	Cash	7,900
	Service Revenue		7,900
Mar.20	Rent expense	5,700
	Cash		5,700
Mar.31	Salaries expense	3,700
	Cash		3,700
Mar.31	Cash ($1,530*1/2)	765
	Accounts Receivable	765
	Sales Revenue ($10,200*0.15)		1,530

Part 2 : Now, the second step is to open ledger accounts and post the above journal entries to ledgers which is shown as follows:- (All amounts are in $)

Cash

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar. 1	Balance	18,800	Mar. 2	Rent expense	1,100
Mar.9	Service revenue	10,400	Mar.10	Accounts Payable	8,500
Mar.20	Service revenue	7,900	Mar.10	Accounts Payable	2,900
Mar.31	Sales revenue	765	Mar.12	Advertising expense	600
			Mar.20	Rent expense	5,700
			Mar.31	Salaries expense	3,700
			Mar.31	Balance	15,365
		37,865			37,865

  Land

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.1	Balance	40,800	Mar.31	Balance	40,800

Buildings

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.1	Balance	22,000	Mar.31	Balance	22,000

Equipment

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.1	Balance	16,000	Mar.31	Balance	16,000

Accounts Payable

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.10	Cash	8,500	Mar.1	Balance	14,800
Mar.10	Cash	2,900	Mar.2	Rent expense	8,500
Mar.31	Balance	11,900
		23,300			23,300

Common Stock

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.31	Balance	82,800	Mar.1	Balance	82,800

Rent expense

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.2	Cash	1,100	Mar.31	Balance	15,300
Mar.2	Accounts Payable	8,500
Mar.20	Cash	5,700
		15,300			15,300

Service revenue

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.31	Balance	18,300	Mar.9	Cash	10,400
			Mar.20	Cash	7,900
		18,300			18,300

Advertising expense

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.12	Cash	600	Mar.31	Balance	600

Salaries expense

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.31	Cash	3,700	Mar.31	Balance	3,700

Accounts Receivable

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.31	Sales revenue	765	Mar.31	Balance	765

Sales revenue

Date	Account Title	Amt.	Date	Account Title	Amt.
Mar.31	Balance	1,530	Mar.31	Cash	765
			Mar.31	Accounts Receivable	765
		1,530			1,530

Part 3 : Now the last step is to prepare trial balance as on March 31 which is shown as follows:-

Trial Balance as on March 31 (Amount in $)

Account Titles	Debit	Credit
Cash	15,365
Land	40,800
Buildings	22,000
Equipment	16,000
Accounts Payable		11,900
Common Stock		82,800
Rent expense	15,300
Service Revenue		18,300
Advertising expense	600
Salaries expense	3,700
Accounts Receivable	765
Sales Revenue		1,530
Totals	114,530	114,530