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The Palace Theater opened on April 1. All facilities were completed on March 31. At this time, the ledger showed No. 101 Cash $6,000, No. 140 Land $12,000, No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $8,000, No. 157 Equipment $6,000, No. 201 Accounts Payable $2,000, No. 275 Mortgage Payable $10,000, and No. 311 Common Stock $20,000. During April, the following events and transactions occurred.
Apr. 2 Paid film rental of $800 on first movie.
3 Ordered two additional films at $950 each.
9 Received $1,800 cash from admissions.
10 Made $2,000 payment on mortgage and $1,000 for accounts payable due.
11 Palace Theater contracted with Dever Company to operate the concession stand. Dever is to pay 18% of gross concession receipts (payable monthly) for the rental of the concession stand.
12 Paid advertising expenses $320.
20 Received one of the films ordered on April 3 and was billed $950. The film will be shown in April.
25 Received $5,200 cash from admissions.
29 Paid salaries $1,600.
30 Received statement from Dever showing gross concession receipts of $1,000 and the balance due to The Palace Theater of $180 ($1,000 X 18%) for April. Dever paid one-half of the balance due and will remit the remainder on May 5.
30 Prepaid $1,000 rental on special film to be run in May.
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