P2.7A (LO 2, 3, 4) AP Sequel Theatre, owned by Nadia Wood, is unique as it...

 

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P2.7A (LO 2, 3, 4) AP Sequel Theatre, owned by Nadia Wood, is unique as it shows only movies that are part of a theme with sequels. As at April 30, 2024, the ledger of Sequel Theatre showed the following: Cash $18,900, Land $75,000, Buildings $69,800, Equipment $17,000, Accounts Payable $4,990, Mortgage Payable $106,300, and N. Wood, Capital $69,410. In May, the following events and transactions occurred: May 1 2 Rented the first four Harry Potter movies, to be shown in the first two weeks of May. The film rental was $25,000. Of that amount, $10,784 was paid in cash and the balance will be paid on May 10. Hired M. Brewer to operate the concession stand. Brewer agreed to pay Sequel Theatre 15% of gross concession receipts, on the last day of each month, for the right to operate the concession stand. admissions. 7 10 10 15 transaction. 5335 25 30 31 33 31 31 Paid advertising expenses, $1,090. Received $35,940 cash from customers for Paid the balance due from the May 1 movie rental Received the final four Harry Potter movies to be shown in the last two weeks of May. The film rental cost was $28,600. Paid $14,300 cash and the balance will be paid on June 1. Paid the accounts payable owing at the end of April. Paid salaries of $6,230. Received statement from Brewer showing gross receipts from concessions of $27,700 and the balance due to Sequel Theatre of $4,155 ($27,700 x 15%) for May. Brewer paid $2,370 of the balance due and will pay the rest on June 5. Received $41,800 cash from admissions. Made a $1,790 mortgage payment. Of this amount, $1,185 is a principal payment, and $605 is interest on the mortgage. In addition to the accounts identified above, Sequel Theatre's ledger includes the following: Accounts Receivable; Admission Revenue; Concession Revenue; Advertising Expense; Film Rental Expense; Interest Expense; and Salaries Expense. P2.7A (LO 2, 3, 4) AP Sequel Theatre, owned by Nadia Wood, is unique as it shows only movies that are part of a theme with sequels. As at April 30, 2024, the ledger of Sequel Theatre showed the following: Cash $18,900, Land $75,000, Buildings $69,800, Equipment $17,000, Accounts Payable $4,990, Mortgage Payable $106,300, and N. Wood, Capital $69,410. In May, the following events and transactions occurred: May 1 2 Rented the first four Harry Potter movies, to be shown in the first two weeks of May. The film rental was $25,000. Of that amount, $10,784 was paid in cash and the balance will be paid on May 10. Hired M. Brewer to operate the concession stand. Brewer agreed to pay Sequel Theatre 15% of gross concession receipts, on the last day of each month, for the right to operate the concession stand. admissions. 7 10 10 15 transaction. 5335 25 30 31 33 31 31 Paid advertising expenses, $1,090. Received $35,940 cash from customers for Paid the balance due from the May 1 movie rental Received the final four Harry Potter movies to be shown in the last two weeks of May. The film rental cost was $28,600. Paid $14,300 cash and the balance will be paid on June 1. Paid the accounts payable owing at the end of April. Paid salaries of $6,230. Received statement from Brewer showing gross receipts from concessions of $27,700 and the balance due to Sequel Theatre of $4,155 ($27,700 x 15%) for May. Brewer paid $2,370 of the balance due and will pay the rest on June 5. Received $41,800 cash from admissions. Made a $1,790 mortgage payment. Of this amount, $1,185 is a principal payment, and $605 is interest on the mortgage. In addition to the accounts identified above, Sequel Theatre's ledger includes the following: Accounts Receivable; Admission Revenue; Concession Revenue; Advertising Expense; Film Rental Expense; Interest Expense; and Salaries Expense.

Answer rating: 100% (QA)

Answer To analyze the transactions and events for Sequel Theatre in May 2024 we need to record each transaction and event in the appropriate ledger ac... View the full answer