The Star Theatre, Inc. is unique as it shows only triple features of sequential theme movies. As at February 29, 2012, the Star's general ledger showed Cash $15,000; Land $85,000; Buildings (concession stand, projection room, tick- et booth, and screen) $77,000; Equipment $20,000; Accounts Payable $12,000; Mortgage Payable $118,000; Common Shares $40,000; and Retained Earnings $27,000. During the month of March, the following events and transactions occurred:

Mar. 2 Received three Harry Potter movies to be shown during the first three weeks of March. The film rental was $27,000. Of that amount, $10,000 was paid in cash and the remainder will be paid on March 10.

2 Hired M. Brewer to operate concession stand. Brewer agrees to pay Star Theatre 15% of gross receipts, payable on the last day of each month, for the right to operate the concession stand.

5 Ordered three Shrek movies, to be shown the last 10 days of March. The film rental cost is $300 per night.

9 Received $16,300 from customers for admissions.

12 Paid balance due on the Harry Potter movie rentals.

13 Paid the accounts payable owing at the end of February.

19 Paid advertising expenses, $950.

20 Received $16,600 from customers for admissions.

23 Received the Shrek movies and paid rental fee of $3,000 ($300 × 10 nights).

25 Received $18,400 from customers for admissions.

27 Paid salaries of $4,200.

30 Received statement from M. Brewer, showing gross concession receipts of $8,600, and the balance due to Star Theatre of $1,290 for March. Brewer paid half of the balance due and will remit the remainder on April 5.

30 Paid $1,250 of mortgage principal and $750 of interest on the mortgage

Instructions

(a) Using T accounts, enter the beginning balances in the ledger as at February 29.

(b) Journalize the March transactions.

(c) Post the March journal entries to the ledger.

(d) Prepare a trial balance at March 31, 2012.