Campus Theater adjusts its accounts every month. Below is the company’s unadjusted trial balance dated August 31, 2011. Additional information is provided for use in preparing the company’s adjusting entries

Campus Theater adjusts its accounts every month. Below is the company’s unadjusted trial balance dated August 31, 2011. Additional information is provided for use in preparing the company’s adjusting entries for the month of August. (Bear in mind that adjusting entries have already been made for the first seven months of 2011, but not for August.) Other Data Film rental expense for the month is $15,200. However, the film rental expense for several months has been paid in advance. The building is being depreciated over a period of 20 years (240 months). The fixtures and equipment are being depreciated over a period of five years (60 months). On the first of each month, the theater pays the interest that accrued in the prior month on its note payable. At August 31, accrued interest payable on this note amounts to $1,500. The theater allows the local YMCA to bring children attending summer camp to the movies on any weekday afternoon for a fixed fee of $500 per month. On June 28, the YMCA made a $1,500 advance payment covering the months of July, August, and September. The theater receives a percentage of the revenue earned by Tastie Corporation, the concessionaire operating the snack bar. For snack bar sales in August, Tastie owes Campus Theater $2,250, payable on September 10. No entry has yet been made to record this revenue. (CreditConcessions Revenue.) Salaries earned by employees, but not recorded or paid as of August 31, amount to $1,700. No entry has yet been made to record this liability and expense. Income taxes expense for August is estimated at $4,200. This amount will be paid in the September 15 installment payment. Utilities expense is recorded as monthly bills are received. No adjusting entries for utilities expense are made at month-end. Instructions a) For each of the numbered paragraphs, prepare the necessary         adjusting entry (including an explanation). b) Refer to the balances shown in the unadjusted trial balance at August 31. How many months of expense are included in each of the following account balances? (Remember, Campus Theater adjusts its accounts monthly. Thus, the accounts shown were last adjusted on July 31, 2011.) Utilities Expense Depreciation Expense Accumulated Depreciation: Building c)   Prepare Adjusted Trail Balance. d)   Prepare Income Statement, Retained Earning and Balance sheet. Transcribed Image Text: CAMPUS THEATER
UNADJUSTED TRIAL BALANCE
AUGUST 31, 2011
Cash ..
$ 20,000
Prepaid film rental
31,200
Land…
120,000
Building.
Accumulated depreciation: building.
Fixtures and equipment.
168,000
$ 14,000
36,000
Accumulated depreciation: fixtures and equipment.
Notes payable ….
Accounts payable
Uneamed admissions revenue (YMCA)
Income taxes payable
Capital stock ….
Retained earnings
12,000
180,000
4,400
1,000
4,740
40,000
46,610
Dividends…..
15,000
Admissions revenue
305,200
Concessions revenue.
14,350
Salaries expense..
Film rental expense.
68,500
94,500
Utilities expense…
Depreciation expense: building.
Depreciation expense: fixtures and equipment.
Interest expense
9,500
4,900
4,200
….
10,500
Income taxes expense..
40,000
$622,300 $622,300
|

Do you need us to help you on this or any other assignment?


Make an Order Now