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    jenpriceless104's Avatar
    jenpriceless104 Posts: 11, Reputation: 1
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    #1

    Jun 7, 2010, 12:05 PM
    General Journal Accounting Question
    This is the problem

    Campus Theater adjusts its accounts every month. Below is the company's unadjusted trial balance dated August 31, 2009. Additional information is provided for use in preparing the company's adjusting entries for the month of August. ( Bear in mind that adjusting entries have already been made for the first seven months of 2009, but not for August.)
    Unadjusted Trial Balance August 31, 2009

    Cash (D) 20,000
    Prepaid film rental (D) 31,200
    Land (D) 120,000
    Building (D)168,000
    Accumulated depreciation: Building (C) 14,000
    Fixtures and equpiment (D) 36,000
    Accumulated depreciation: fixtures and equipment (C) 12,000
    Notes Payable (C) 180,000
    Acocunts Pyable (C) 4,400
    Unearned admissions revnue (YMCA) (C) 1,000
    Income tax payable (C) 4,740
    Cpaital Stock (C) 40,000
    Retained earning (C) 46,610
    Dividends (D) 15,000
    Admissions Revnue (C) 305,200
    Coneceessions Revnue (D) 68,500
    Salaries expense (D) 94,500
    Film rental expense (D) 9,500
    Utilitie expenese (D) 9,500
    Depreciation expense: building (D) 4900
    Depreciation expense: fixtures & equpiment (D) 4,200
    Interest expense (D) 10,500
    Income tax espense (d) 40,000
    Total (D) 622,300 and Total (C) 622,300


    Other Data
    1. Film rental expense for the month is $ 15,200. However, the film rental expense for several months has been paid in advance.

    2. The building is being depreciated over a period of 20 years ( 240 months).

    3. The fixtures and equipment are being depreciated over a period of five years ( 60 months).

    4. On the first of each month, the theater pays the interest that accrued in the prior month on its note payable. At August 31, accrued interest payable on this note amounts to $ 1,500.

    5. The theater allows the local YMCA to bring children attending summer camp to the movies on any weekday afternoon for a fixed fee of $ 500 per month. On June 28, the YMCA made a $ 1,500 advance payment covering the months of July, August, and September.

    6. The theater receives a percentage of the revenue earned by Tastie Corporation, the conces-sionaire operating the snack bar. For snack bar sales in August, Tastie owes Campus Theater $ 2,250, payable on September 10. No entry has yet been made to record this revenue. ( Credit Concessions Revenue.)

    7. Salaries earned by employees, but not recorded or paid as of August 31, amount to $ 1,700. No entry has yet been made to record this liability and expense.

    8. Income taxes expense for August is estimated at $ 4,200. This amount will be paid in the September 15 installment payment.

    9. Utilities expense is recorded as monthly bills are received. No adjusting entries for utilities expense are made at month- end.

    Instructions a. For each of the numbered paragraphs, prepare the necessary adjusting entry ( including an explanation).

    b. Refer to the balances shown in the unadjusted trial balance at August 31. How many months of expense are included in each of the following account balances? ( Remember, Campus Theater adjusts its accounts monthly. Thus, the accounts shown were last adjusted on July 31, 2009.)
    1. Utilities Expense
    2. Depreciation Expense
    3. Accumulated Depreciation: Building

    c. Assume the theater has been operating profitably all year. Although the August 31 trial bal-ance shows substantial income taxes expense, income taxes payable is a much smaller amount. This relationship is quite normal throughout much of the year. Explain.

    HERE IS WHAT I GOT FOR A so far. Please tell me if it looks good. I am not sure what I should put for 5, 6 & 9 in the journal?

    1. Film Rental Expense (debit) 15,200
    Prepaid Film Rental (Credit) 15,200
    2. Depreciation Expense: Buildings (debit) 700
    Accumulated Depreciation: Building (Credit) 700
    3. Depreciation Expense: Fixtures and equip (debit) 600
    Accumulated Depreciation: Fixtures and Equipment (credit) 600
    4. Interest Expense (debit) 1,500
    Interest Payable (credit) 1,500
    5.?
    6.?
    7. Salaries Expense (debit) 1,700
    Salaries Payable (credit) 1,700
    8. Income Tax Expense (debit) 4,200
    Income Tax Payable (credit) 4,200
    9.?

    Can someone please help me with 5, 6 and 9 and tell me how the rest of the journal looks so far? Thanks so much.
    Ml_anindyab's Avatar
    Ml_anindyab Posts: 1, Reputation: 1
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    #2

    Jun 23, 2010, 12:52 PM
    Please ans me the above question
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Jun 24, 2010, 12:12 PM

    1. The Credit entry should be to Accounts Payable

    5. Debit Cash for the amount and Credit Unearned Admisssions Revenue for the amount.

    6. Debit Accounts Receivable for the amount and Debit Concession Revenue for the amount

    9. No entry required

    The rest looks good.
    simongreige's Avatar
    simongreige Posts: 1, Reputation: 1
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    #4

    Jul 26, 2010, 01:18 PM
    In 5 you can't debit cash in adjusting entry just debit unearned admission revenue cz it's a liab and credit revenue
    mandi900's Avatar
    mandi900 Posts: 1, Reputation: 1
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    #5

    Sep 24, 2010, 04:46 AM
    What is answer for c?
    Dongdong's Avatar
    Dongdong Posts: 1, Reputation: 1
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    #6

    Dec 6, 2010, 11:29 AM
    Anyone advise the answer for b?

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