I need help with the practive problem. Vinnie’s Drive-In Theater Inc., was recently formed and all facilities were completed on June 30. On July 1, the ledger showed: Cash $6,300; Land $10,000; Buildings (concession stand, projection room, ticket booth, and screen), $58,000; Equipment $6,000; Accounts Payable $2,300; Mortgage Payable $38,000; and Common Stock $40,000. In addition to the accounts identified above, the chart of accounts shows the following additional accounts: Accounts Receivable, Prepaid Rent, Service Revenue, Rent Revenue, Advertising Expense, Rent Expense, Salaries and Wages Expense. During July, the following events and transactions occurred. July 2 Paid film rental fee of $1,800 on first movie 3 Placed an order to rent two additional films at $750 each. 9 Received $5,700 cash from admissions. 10 Paid $2,000 of mortgage payable and $1,200 of accounts payable. 11 Vinnie’s Drive-In contracted with Mitch Miller to operate the concession stand. Miller agrees to pay Vinnie’s Drive-In 17% of the concession stands’ gross receipts, payable monthly. 12 Paid advertising expenses of $410. 20 Received one of the films ordered on July 3 and was billed $750. The film will be shown in July. 25 Received $3,000 cash from customers for admissions. 31 Paid salaries $1,900. 31 Received statement from Miller showing gross concession receipts of $2,000 and the balance due to Vinnie’s Drive-In of $340 ($2,000 x .17) for July. Miller paid half of the balance due and will remit the remainder on August 5. 31 Pail $1,200 rental fee on special film to be run in the second week in August. Instructions: Enter the beginning balances in the ledger T-accounts as of July 1. Journalize the July transactions, including explanations (NOTE: Vinnie’s Drive-In records admission revenue as service revenue, the 17% of concession revenue as sales revenue, and film rental expenses as rent expense.) Post the July journal entries to the ledger’s T-accounts. Prepare a trail balance on July 31, 2023.
I need help with the practive problem.
Vinnie’s Drive-In Theater Inc., was recently formed and all facilities were completed on June 30. On July 1, the ledger showed: Cash $6,300; Land $10,000; Buildings (concession stand, projection room, ticket booth, and screen), $58,000; Equipment $6,000; Accounts Payable $2,300; Mortgage Payable $38,000; and Common Stock $40,000.
In addition to the accounts identified above, the chart of accounts shows the following additional accounts:
During July, the following events and transactions occurred.
July 2 Paid film rental fee of $1,800 on first movie
3 Placed an order to rent two additional films at $750 each.
9 Received $5,700 cash from admissions.
10 Paid $2,000 of mortgage payable and $1,200 of accounts payable.
11 Vinnie’s Drive-In contracted with Mitch Miller to operate the concession stand. Miller agrees to pay Vinnie’s Drive-In 17% of the concession stands’ gross receipts, payable monthly.
12 Paid advertising expenses of $410.
20 Received one of the films ordered on July 3 and was billed $750. The film will be shown in July.
25 Received $3,000 cash from customers for admissions.
31 Paid salaries $1,900.
31 Received statement from Miller showing gross concession receipts of $2,000 and the balance due to Vinnie’s Drive-In of $340 ($2,000 x .17) for July. Miller paid half of the balance due and will remit the remainder on August 5.
31 Pail $1,200 rental fee on special film to be run in the second week in August.
Instructions:
- Enter the beginning balances in the ledger T-accounts as of July 1.
- Journalize the July transactions, including explanations (NOTE: Vinnie’s Drive-In records admission revenue as service revenue, the 17% of concession revenue as sales revenue, and film rental expenses as rent expense.)
- Post the July
journal entries to the ledger’s T-accounts. - Prepare a trail balance on July 31, 2023.
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