Q2: NUR Nursery started operations on October 1,2021. Followings are the transactions for October 2021:
a) prepare journal entries
b) Ledger based on a)
c) Trial Balance
Q3: The Starr Theater, owned by Meg Vargo, will begin operations in March. As of March 1, the ledger of Starr showed: No.101 Cash $3000. No.140 Land $24000. No.145 Buildings (concession stand, projection room, ticket booth and screen). $10000 No.157 Equipment $10000. No.201 Accounts Payable $7000 and No. 301 Owner's Capital $40000. During month of March, the following events and transaction occured:
a) Enter the bveginnning balances in the ledger. Insert a check mark in reference coloumn of ledger for beginning balance.
b) Journalize the March transactions. Starr records amission revenue as service revenue, rental of concession stand as rent revenue and film rental expense as rent expense.
c) Post 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.
Transcribed Image Text:a)
Prepare journal entries for the above transactions.
Post the journal entries in (a) to the ledger.
b)
c)
Prepare a trial balance for NUR Nursery as at October 31 2021.
QUESTION 3
P2-5A The Starr Theater, owned by Meg Vargo, will begin operations in March. The
Starr will be unique in that it will show only triple features of sequential theme movies.
As of March 1, the ledger of Starr showed: No. 101 Cash $3,000, No. 140 Land $24,000,
No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $10,000.
No. 157 Equipment $10,000, No. 201 Accounts Payable $7,000, and No. 301 Owner's
Capital $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; $1,500 was paid in cash and $2,000 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 $200 per night.
9
Received $4,300 cash from admissions.
10
Paid balance due on Indiana Jones movies rental and $2,100 on March 1
accounts payable.
11
Starr Theater contracted with Adam Ladd to operate the concession stand.
Ladd is to pay 15% of gross concession receipts, payable monthly, for the
rental of the concession stand.
12
Paid advertising expenses $900.
20
Received $5,000 cash from customers for admissions.
20
Received the Lord of the Rings movies and paid the rental fee of $2,000.
Paid salaries of $3,100.
31
31.
Received statement from Adam Ladd showing gross receipts from concessions
of $6,000 and the balance due to Starr Theater of $900 ($6,000 x 15%) for
March. Ladd 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 Advertis-
ing Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent 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. Starr records admission revenue as service reve-
nue, rental of the concession stand as rent revenue, and film rental expense as rent
expense.
(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.
Transcribed Image Text:STAE
QUESTION 4
Prepare an income statement, an owner's equity statement, and a balance sheet for the dental
practice of Tim Turner, DDS, from the items listed below the month of October, 2020.
Tim Turner, Capital, October 1
$42,000
Accounts payable
7,000
Equipment
30,000
Service revenue
25,000
Tim Turner, Drawings
6,000
Dental supplies expense
3,500
Cash
6,000
Utilities expense
700
Dental supplies
2,800
Salaries expense
9,000
Accounts receivable
14,000
Rent expense
2,000
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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