ACCO 230 Lecture Notes - Lecture 3: Accounts Payable, Retained Earnings, Share Capital

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greenwallaby169

9 Feb 2018

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The josie theater, owned by josie smith, will begin operations in february. Cash ,000, land ,000, buildings ,000, equipment ,000, accounts. Payable ,000, share capital ordinary ,000 and retained earnings ,000. During the month of march the following events and transactions occurred: rented three movies to be shown for the first 3 weeks of march. The film rental was ,500; ,500 was paid in cash and ,000 will be paid on 10th. March: ordered a movie to be shown the last 10 days of march. It will cost per night: received ,000 cash from admissions, paid balance due on movies rental and ,100 of the 1st march accounts payable, josie theater contracted with stephanie becker to operate the concession stand. Stephanie paid one-half the balance due and will remit the remainder on 5th april: received ,000 cash from customers for admissions, declared and paid a dividend of ,000.

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AP3-8A

The Star-Lite Theater Inc wasrecently formed. It began operations in March 2010. The Star-Liteis unique in that it will show only triple features of sequentialtheme movies. On March 1, the ledger of The Star-Lite showed: Cash$20,167; Land $42,167; Buildings (concession stand, projectionroom, ticket booth, and screen) $22,000; Equipment $16,000;Accounts Payable $16,167; and Common Stock $84,167. During themonth of March the following events and transactionsoccurred.

Mar. 2 Rented the three Star Warsmovies (Star Wars (R), The Empire Strikes Back, and The Return ofthe Jedi) to be shown for the first three weeks of March. The filmrental was $10,431; $2,820 was paid in cash and $7,611 will be paidon March 10.
Mar 3. Ordered the first three StarTrek movies to be shown the last 10 days of March. It will cost$400 per night.
Mar 9. Received $9,676 cash fromadmissions.
Mar 10. Paid balance due on StarWars movies rental and $2,600 on March 1 accountspayable.
Mar 11. Hired J. Carne to operateconcession stand. Carne agrees to pay The Star-Lite Theater 15% ofgross receipts, payable monthly.
Mar 12. Paid advertising expenses$950.
Mar 20. Received $8,092 cash fromcustomers for admissions.
Mar 20. Received the Star Trekmovies and paid rental fee of $4,351.
Mar 31. Paid salaries of$3,837.
Mar 31. Received statement from J.Carne showing gross receipts from concessions of $13,600 and thebalance due to The Star-Lite of $2,040 for March. Carne paid halfthe balance due and will remit the remainder on April5.
Mar 31. Received $21,919 cash fromcustomers for admissions.

In addition to the accountsidentified above, the chart of accounts includes: Accountsreceivable, Admission Revenue, Concession Revenue, Advertisingexpense, Film rental expense, and Salaries Expense.

Journalize the March transactions.(If no entry is necessary, enter No entry for the account and 0 forthe amount. List multiple debit/credit entries from largest tosmallest amount, e.g. 10, 5, 2. If amounts are the same, listalphabetically.)

****** Ineed help on this part ***** Complete the trial balance on March31, 2010. (If answer is zero please enter 0, do not leave anyfields blank.)

Cash--------------------> Don't know debit and credit valueshere!!
AccountsReceivable -------------------> $1,020 for debit and $0 forcredit
Land----------------------> $42,167 for debt and $0 forcredit
Buildings----------------------> $22,000 for debt and $0 forcredit
Equipment----------------------> $16,000 for debit and $0 forcredit
AccountsPayable ------------------> Don't know the values for debit andcredit here!!!!
CommonStock -----------------------> $0 for debit and $84,167 forcredit
AdmissionRevenue ---------------------> $0 for debit and $39,687 forcredit
ConcessionRevenue --------------------------> $0 for debit and $2,040 forcredit
Advertising Expense---------------------------> $950 for debit and $0 forcredit
FilmRental Expense ---------------------------> $14,782 for debitand $0 for credit
SalariesExpense ---------------------------------> $3,837 for debit and$0 for credit

plumdog856

Bev's Dry Cleaners is owned and operated by Beverly Zahn. Abuilding and equipment are currently being rented, pendingexpansion to new facilities. The actual work of dry cleaning isdone by another company at wholesale rates. The assets and theliabilities of the business on November 1, 2016, are as follows:Cash, $39,000; Accounts Receivable, $80,000; Supplies, $11,000;Land, $50,000; Accounts Payable, $31,500. Business transactionsduring November are summarized as follows: A. Beverly Zahn investedadditional cash in the business with a deposit of $21,000 in thebusiness bank account. B. Purchased land adjacent to land currentlyowned by Bev's Dry Cleaners to use in the future as a parking lot,paying cash of $35,000. C. Paid rent for the month, $4,000. D.Charged customers for dry cleaning revenue on account, $72,000. E.Paid creditors on account, $20,000. F. Purchased supplies onaccount, $8,000. G. Received cash from cash customers for drycleaning revenue, $38,000. H. Received cash from customers onaccount, $77,000. I. Received monthly invoice for dry cleaningexpense for November (to be paid on December 10), $29,450. J. Paidthe following: wages expense, $24,000; truck expense, $2,100;utilities expense, $1,800; miscellaneous expense, $1,300. K.Determined that the cost of supplies on hand was $11,800;therefore, the cost of supplies used during the month was $7,200.L. Withdrew $5,000 for personal use. Required: 1. Determine theamount of Beverly Zahn's capital as of November 1 of the currentyear. 2. State the assets, liabilities, and owner's equity as ofNovember 1 in equation form similar to that shown in this chapter.A. Enter the balance for November 1 in the first Bal row. B. Ineach transaction row (rows indicated by a letter), indicateincreases and decreases resulting from each transaction. (You canclick on the letter for the transaction description.) In columnseffected by the transaction: â¢ Enter the math sign (+ or -) in theleft-hand cell of the column. â¢ Enter the amount in the right-handcell of the column. (Do NOT use a plus or minus in the same cellthat you enter the amount. Entering a minus sign will produce anerror âInput out of range.â C. In the Bal row following eachtransaction row, enter the new balance. 3. Prepare an incomestatement for November, a statement of owner's equity for November,and a balance sheet as of November 30.* 4. Prepare a statement ofcash flows for November.* * Refer to the Accounts in the accountingequation grid and to the list of Labels and Amount Descriptions forthe exact wording of the answer choices for text entries. Be sureto complete the statement heading. If a net loss has been incurred,enter that amount as a negative number using a minus sign. Enteramounts that represent cash outflows as a negative number using aminus sign. You will not need to enter colons (:) or the wordDeduct on the statements.

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ACCO 230 Lecture Notes - Lecture 3: Accounts Payable, Retained Earnings, Share Capital

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