Preparation of the Financial Statements Use accounting cycle to complete this project by (Excel)
The Classic Theater Ltd. opened on April 1. All facilities were completed on March 31. At this time, the ledger showed No. 101 Cash €6,000, No. 140 Land €10,000, No. 145 Buildings (concession stand, projection room, ticket booth, and screen) €8,000, No. 157 Equipment €6,000, No. 201 Accounts Payable €2,000, No. 275 Mortgage Payable €8,000, and No. 311 Share Capital—Ordinary €20,000. During April, the following events and transactions occurred. 2nd Apr Paid film rental of €800 on first movie. 3rd Apr Ordered two additional films at €1,000 each. 9th Apr Received €1,800 cash from admissions. 10th Apr Made €2,000 payment on mortgage and €1,000 for accounts payable due. 11th Apr Classic Theater contracted with D. Zarle Company to operate the concession stand. Zarle is to pay 18% of gross concession receipts (payable monthly) for the rental of the concession stand. 12th Apr Paid advertising expenses €300. 20th Apr Received one of the films ordered on April 3 and was billed €1,000. The film will be shown in April. 25th Apr Received €5,500 cash from admissions. 29th Apr Paid salaries €1,600. 30th Apr Received statement from D. Zarle showing gross concession receipts of €1,200 and the balance due to The Classic Theater of €216 (€1,200 × 18%) for April. Zarle paid one-half of the balance due and will remit the remainder on May 5. 30th Apr Prepaid €1,300 rental on special film to be run in May. In addition to the accounts identified above, the chart of accounts shows No. 112 Accounts Receivable, No. 136 Prepaid Rent, No. 400 Service Revenue, No. 429 Rent Revenue, No. 610 Advertising Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense. Instructions Preparation of the Financial Statements Use accounting cycle to complete this project. The completed Excel spreadsheet should be submitted (a) Enter the beginning balances in the ledger as of April 1. Insert a check mark (✓) in the reference column of the ledger for the beginning balance. (b) Journalize the April transactions. (c) Post the April journal entries to the ledger. Assume that all entries are posted from page 1 of the journal. (d) Prepare a trial balance, income statement, owner’s equity and balance sheet on April 30, 2017 (e) Analysis of the income statement and balance sheet.
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