riviera theater inc was recently formed all facilities were completed on march 31 534359

Riviera Theater Inc. was recently formed. All facilities were completed on March 31. On April 1, the ledger showed: Cash $6,300; Land $10,000; Buildings (concession stand, projection room, ticket booth, and screen) $8,000; Equipment $6,000; Accounts Payable $2,300; Mortgage Payable $8,000; and Common Stock $20,000. During April, the following events and transactions occurred.

Apr. 2 Paid film rental fee of $800 on first movie.

3 Ordered two additional films at $750 each.

9 Received $4,700 cash from admissions.

10 Paid $2,000 of mortgage payable and $1,200 of accounts payable.

11 Hired M. Gavin to operate the concession stand. Gavin agrees to pay Riviera Theater 17% of gross receipts, payable monthly.

12 Paid advertising expenses $410.

20 Received one of the films ordered on April 3 and was billed $750. The film will be shown in April.

25 Received $3,000 cash from customers for admissions.

29 Paid salaries $1,900.

30 Received statement from M. Gavin showing gross receipts of $2,000 and the balance due to Riviera Theater of $340 for April. Gavin paid half of the balance due and will remit the remainder on May 5.

30 Prepaid $1,200 rental fee on special film to be run in May.

In addition to the accounts identified above, the chart of accounts shows: Accounts Receivable, Prepaid Rent, Service Revenue, Sales Revenue, Advertising Expense, Rent Expense, Salaries and Wages Expense.

Instructions

(a) Enter the beginning balances in the ledger T accounts as of April 1.

(b) Journalize the April transactions, including explanations. (Note:Riviera records admission revenue as service revenue, concession revenue as sales revenue, and film rental expense as rent expense.)

(c) Post the April journal entries to the ledger T accounts.

(d) Prepare a trial balance on April 30, 2012.