The Three-Peat Theater Inc. was recently formed. It began operations in March 2007. The Three-Peat is unique in that it will show only triple features of sequential theme movies. On March 1, the ledger of The Three-Peat showed: Cash $16,000; Land $38,000; Buildings (concession stand, projection room, ticket booth, and screen) $22,000; Equipment $16,000; Accounts Payable $12,000; and Common Stock $80,000. During the month of March the following events and transactions occurred.
Mar. 2 - Rented the 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 $12,000; $2,000 was paid in cash and $10,000 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 $400 per night.
9 - Received $9,200 cash from admissions.
10 - Paid balance due on Star Wars movies rental and $2,600 on March 1 accounts payable.
11 - Hired J. Bybee to operate concession stand. Bybee agrees to pay The Three-Peat Theater 15% of gross receipts, payable monthly.
12 - Paid advertising expenses $900.
20 - Received $7,100 cash from customers for admissions.
20 - Received the Star Trek movies and paid rental fee of $4,000.
31 - Paid salaries of $3,800.
31 - Received statement from J. Bybee showing gross receipts from concessions of $9,000 and the balance due to The Three-Peat of $1,350 for March. Bybee paid half the balance due and will remit the remainder on April 5.
31 - Received $20,000 cash from customers for admissions.
1.In addition to the accounts identified above, the chart of accounts includes: Accounts Receivable, Admission Revenue, Concession Revenue, Advertising Expense, Film Rental Expense, and Salaries Expense. Record the journal entries
2. complete the trial balance
