The Star-Lite Theater Inc. was recently formed. It began operations in March 2010. The Star-Lite is unique in that it will show only triple features of sequential theme movies. On March 1, the ledger of The Star-Lite showed: Cash $16,000; Land $38,000; Buildings (concession stand, projection room, ticket booth, and screen) $22,000; Equipment $16,000; Accounts Payable $12,000; and Common Stock $80,000. During the month of March the following events and transactions occurred.
Mar. 2 Rented the three Star Wars movies (Star Wars®, The Empire Strikes Back, and The Return of the Jedi) to be shown for the first three weeks of March. The film rental was $10,000; $2,000 was paid in cash and $8,000 will be paid on March 10.
3 Ordered the first three Star Trek movies to be shown the last 10 days of March. It will cost $400 per night.
9 Received $9,200 cash from admissions.
10 Paid balance due on Star Wars movies rental and $2,600 on March 1 accounts payable.
11 Hired J. Carne to operate concession stand. Carne agrees to pay The Star-Lite Theater 15% of gross receipts, payable monthly.
12 Paid advertising expenses $900.
20 Received $7,100 cash from customers for admissions.
20 Received the Star Trek movies and paid rental fee of $4,000.
31 Paid salaries of $3,800.
31 Received statement from J. Carne showing gross receipts from concessions of $10,000 and the balance due to The Star-Lite of $1,500 for March. Carne paid half the balance due and will remit the remainder on April 5.
31 Received $20,000 cash from customers for admissions.