Question

In: Accounting

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 on account. (Hint: Wildhorse uses the account Rent Expense to record film rentals).
2 Hired M. Brewer to operate concession stand. Brewer agrees to pay Wildhorse 15% of gross receipts, payable on the last day of each month, for the right to operate the concession stand. (Hint: Wildhorse 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 $ 200 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: Wildhorse uses the account Fees Earned to record revenue from admissions.)
19 Paid advertising expenses, $ 960.
20 Received the movies ordered on March 5 and paid rental fee of $ 2,000 ($ 200 × 10 nights).
23 Paid salaries of $ 4,200.
26 Paid $ 1,230 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 $ 16,800, and the balance due toWildhorse of $ 2,520 ($ 16,800 × 15%) for March. Brewer paid half of the balance due and will remit the remainder on April 5.
31 Received $ 26,000 from customers for admissions for the past two weeks.

(a)

Journalize the March transactions. (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.)

Date

Account Titles and Explanation

Debit

Credit

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

Mar. 26

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

Mar. 30

  Mar. 1Mar. 2Mar. 5Mar. 12Mar. 13Mar. 15Mar. 19Mar. 20Mar. 23Mar. 26Mar. 28Mar. 30Mar. 31

List of Accounts

Solutions

Expert Solution

SOLUTION

Date Accounts title and Explanation Debit ($) Credit ($)
Mar.1 Rent expense 27,100
Cash 10,100
Outstanding rent expense 17,000
(To record film rental expenses)
Mar.2 No entry required
Mar.5 No entry required
Mar.12 Outstanding rent expense 17,000
Cash 17,000
(To rceord the payment of Mar.1 balance of rent)
Mar.13 Accounts payable 12,100
Cash 12,100
(To record the payment of February accounts payable)
Mar.15 Cash 25,500
Fees earned 25,500
(To record the revenues from admission)
Mar.19 Advertising expense 960
Cash 960
(To record the payment of advertising expense)
Mar.20 Rent expense 2,000
Cash 2,000
(To record the payment of movies rent)
Mar.23 Salaries expense 4,200
Cash 4,200
(To record the payment of salaries expense)
Mar.26 Mortgage payable 1,230
Interest on mortgage 750
Cash 1,980
(To record the interest on mortgage and its balance)
Mar.28 Income tax expense 3,000
Cash 3,000
(To record the payment of income tax)
Mar.30 Outstanding concession revenue 1,260
Cash (2,520/2) 1,260
Concession revenue 2,520
(To record receipt of concession revenue)
Mar.31 Cash 26,000
Fees earned 26,000
(To record the revenue from admission)

ekkarill92 answered 1 year ago
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