P$2\mathrm{.}5$A $($LO $1,2,3,4)$ The Starr Theater, owned by Meg Vargo, will begin operations in March. 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 $\backslash$$$3,000,$ No$.140$ Land $\backslash$$$24,000,$ No$.145$ Buildings $($concession stand, projection room, ticket booth, and screen$)\backslash$$$10,000,$ No$.157$ Equipment $\backslash$$$10,000,$ No$.201$ Accounts Payable $\backslash (\backslash$$ $7,000\backslash ),$ and No$.301$ Owner's Capital $\backslash$$$40,000.$ 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 $\backslash (\backslash$$ $3,500$ ; $\backslash$$ $1,500\backslash )$ was paid in cash and $\backslash (\backslash$$ $2,000\backslash )$ 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 $\backslash$$$200$ per night.

$9$ Received $\backslash (\backslash$$ $4,300\backslash )$ cash from admissions.

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

$11$ Starr Theater contracted with Adam Ladd to operate the concession stand. Ladd is to pay $\backslash (15\backslash \%\backslash )$ of gross concession receipts, payable monthly, for the rental of the concession stand.

$12$ Paid advertising expenses $\backslash (\backslash$$ $900\backslash ).$

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

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

$31$ Paid salaries of $\backslash$$$3,100.$

$31$ Received statement from Adam Ladd showing gross receipts from concessions of $\backslash$$$6,000$ and the balance due to Starr Theater of $\backslash (\backslash$$ $900(\backslash$$ $6,000\backslash$times $15\backslash \%)\backslash )$ for March. Ladd paid onehalf the balance due and will remit the remainder on April $5.$

$31$ Received $\backslash (\backslash$$ $9,000\backslash )$ cash from customers for admissions.

Journalize transactions, post, and prepare a trial balance.

$2-42$ CHAPTER $2$ The Recording Process

In addition to the accounts identified above, the chart of accounts includes No$.112$ Accounts Receivable, No$.400$ Service Revenue, No$.429$ Rent 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. Insert a check mark $\backslash ((\backslash$boldsymbol$\{\backslash$checkmark$\})\backslash )$ in the reference column of the ledger for the beginning balance.

b$.$ Journalize the March transactions. Starr records admission revenue as service revenue, rental of the concession stand as rent 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$.$ Trial balance totals $\backslash (\backslash$$ $64,100\backslash )$

d$.$ Prepare a trial balance on March $31,2020.$