The Starr Theater, owned by Meg Vargo, began operations March 1. The Starr will be unique in that it will show only triple features of sequential theme movies. As of March 1, the ledger of Starr showed: No. 101 Cash $34,000, No. 157 Equipment $10,000, No. 201 Accounts Payable $7,000, and No. 301 Owner’s Capital $37,000. During the month of March, the following events and transactions occurred.

Mar. 2 Rented the three Indiana Jones movies to be shown for the first 3 weeks of March.

The film rental was $3,500; $1,500 was paid in cash and $2,000 will be paid on March 10.

3 Ordered the Lord of the Rings movies to be shown the last 10 days of March. It will cost $200 per night.

9 Received $4,300 cash from admissions.

10 Paid balance due on Indiana Jones movies rental and $2,100 on March 1 accounts payable.

12 Paid advertising expenses $900.

20 Received $5,000 cash from customers for admissions.

20 Received the Lord of the Rings movies and paid the rental fee of $2,000.

31 Paid salaries of $3,100.

31 Received $9,000 cash from customers for admissions.

31 Paid $20,000 for building rental.

In addition to the accounts identified above, the chart of accounts includes No. 400 Service Revenue, No. 610 Advertising Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

Instructions

a. Enter the beginning balances in the ledger.

b. Journalize the March transactions. Starr records admission revenue as service revenue and film rental expense as rent expense.

c. Post the March journal entries to the ledger. Assume that all entries are posted from page 1 of the journal.

d. Prepare a trial balance on March 31, 2022.