Sequel Theatre, owned by Nadia Fedkovych, is unique as it shows only movies that

Question

Sequel Theatre, owned by Nadia Fedkovych, is unique as it shows only movies that are part of a theme with sequels. As at June 30, 2014, the ledger of Sequel Theatre showed the following: Cash, S17,100; Land, $82,200; Buildings, $71,200; Equipment, $16,700; Accounts Payable, $4,870; Mortgage Payable, $105,100; and N. Fedkovych, Capital, S77,230. In July, the following events and transactions occurred: July 1 Rented the first four Harry Potter movies, to be shown in the first two weeks of July. The film rental was S24,300. Of that amount, $10,246 was paid in cash and the balance will be paid on July 15. 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. Paid advertising expenses, $1,100. 14 Received $37,740 cash from customers for admissions. (Use Service Revenue account.) Paid the balance due from the July 1 movie rental transaction. Received the final four Harry Potter movies to be shown in the last two weeks of July. The film rental cost was $28,500. Paid $14,250 cash and the balance will be paid on August 1. Paid the accounts payable owing at the end of June. Paid salaries of $6,130. Received statement from Brewer showing gross receipts from concessions of $25,300 and the balance due to Sequel Theatre of $3,795 ($25,300 Times 15%) for July. Brewer paid $2,700 of the balance due and will pay the rest on August 5. (Use Concession Revenue account.) Received $44,080 cash from admissions. (Use Service Revenue account.) Made a $1,745 mortgage payment. Of this amount, $1,210 is a principal payment, and $535 is interest on the mortgage. Journalize the July transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Explanation / Answer

Date Accounts Titles and Explanation Debit Credit 1-Jul Film Rental Expense 24300 Cash 10246 Accounts Payable 14054 3-Jul Advertising Expense 1100 Cash 1100 14-Jul Cash 37740 Service Revenue 37740 15-Jul Accounts Payable 14054 Cash 14054 16-Jul Film Rental Expense 28500 Cash 14250 Accounts Payable 14250 27-Jul Accounts Payable 4870 Cash 4870 30-Jul Salaries Expense 6130 Cash 6130 31-Jul Cash 2700 Accounts Receivable 1095 3795 Concession Revenue Account 31-Jul Cash 44080 Service Revenue 44080 31-Jul Mortgage Payable 1210 Interest Expense 535 Cash 1745

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