Reference no: EM131811377
Question - The SciFi Theater Inc. was recently formed. It began operations in March 2012. The SciFi is unique in that it will show only triple features of sequential theme movies. On March 1, the ledger of The SciFi showed: Cash $16,000; Land $38,000; Buildings (concession stand, projection room, ticket booth, and screen) $22,000; Equipment $16,000; Accounts Payable $12,000; and Common Stock $80,000. During the month of March the following events and transactions occurred.
Mar. 2 Rented the three Star Wars movies (Star Wars®, The Empire Strikes Back, and The Return of the Jedi) to be shown for the first three weeks of March. The film rental was $10,000; $2,000 was paid in cash and $8,000 will be paid on March 10.
3 Ordered the first three Star Trek movies to be shown the last 10 days of March. It will cost $500 per night.
9 Received $9,900 cash from admissions.
10 Paid balance due on Star Wars movies rental and $2,900 on March 1 accounts payable.
11 Hired J. Carne to operate the concession stand. Carne agrees to pay The SciFi Theater 15% of gross receipts, payable monthly.
12 Paid advertising expenses $500.
20 Received $8,300 cash from customers for admissions.
20 Received the Star Trek movies and paid rental fee of $5,000.
31 Paid salaries of $3,800.
31 Received statement from J. Carne showing gross receipts from concessions of $10,000 and the balance due to The SciFi of $1,500 for March. Carne paid half the balance due and will remit the remainder on April 5.
31 Received $20,000 cash from customers for admissions.
Prepare a trial balance on March 31, 2012?
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