The Wilson Theater Ltd., owned by Tegan Wilson, will begin operations in March. The Wilson will be unique in that it will show only triple features of sequential theme movies. As of March 1, the ledger of Wilson showed No. 101 Cash £7,000, No. 140 Land £22,000, No. 145 Buildings (concession stand, projection room, ticket booth, and screen) £10,000, No. 157 Equipment £8,000, No. 201 Accounts Payable £7,000, and No. 311 Share Capital- Ordinary £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 £3,500; £1,000 was paid in cash and £2,500 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 £240 per night.
9 Received £4,000 cash from admissions.
10 Paid balance due on Indiana Jones movies rental and £1,600 on March 1 accounts payable.
11 Wilson Theater contracted with M. Brewer to operate the concession stand. Brewer is to pay 15% of gross concession receipts (payable monthly) for the right to operate the concession stand.
12 Paid advertising expenses £450.
20 Received £4,400 cash from customers for admissions.
20 Received the Lord of Rings movies and paid the rental fee of £2,400.
31 Paid salaries of £2,500.
31 Received statement from M. Brewer showing gross receipts from concessions of £3,000 and the balance due to Wilson Theater of £450 (£3,000 × 15%) for March. Brewer paid one-half the balance due and will remit the remainder on April 5.
31 Received £9,000 cash from customers for admissions.
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. 729 Rent Expense, and No. 726 Salaries and Wages Expense.
Instructions
(a) Enter the beginning balances in the ledger. Insert a check mark (✓) in the reference column of the ledger for the beginning balance.
(b) Journalize the March transactions.
(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, 2017.