Sequel Theatre, owned by Nadia Wood, is unique as it shows onlymovies that are part of a theme with sequels. As at April 30, 2021,the ledger of Sequel Theatre showed the following: Cash $18,900,Land $75,000, Buildings $69,800, Equipment $17,000, AccountsPayable $4,990, Mortgage Payable $106,300, and N. Wood, Capital$69,410. In May, the following events and transactionsoccurred:

Journalize transactions, post, and prepare trialbalance.

May   1	?	Rented the first four Harry Potter movies, to be shownin the first two weeks of May. The film rental was $25,000. Of thatamount, $10,784 was paid in cash and the balance will be paid onMay 10.
2		Hired M. Brewer to operate the concession stand. Brewer agreedto pay Sequel Theatre 15% of gross concession receipts, on the lastday of each month, for the right to operate the concessionstand.
7		Paid advertising expenses, $1,090.
10		Received $35,940 cash from customers for admissions.
10		Paid the balance due from the May 1 movie rentaltransaction.
15		Received the final four Harry Potter movies to beshown in the last two weeks of May. The film rental cost was$28,600. Paid $14,300 cash and the balance will be paid on June1.
25		Paid the accounts payable owing at the end of April.
30		Paid salaries of $6,230.
31		Received statement from Brewer showing gross receipts fromconcessions of $27,700 and the balance due to Sequel Theatre of$4,155 ($27,700 × 15%) for May. Brewer paid $2,370 of the balancedue and will pay the rest on June 5.
31		Received $41,800 cash from admissions.
31		Made a $1,790 mortgage payment. Of this amount, $1,185 is aprincipal payment, and $605 is interest on the mortgage.

In addition to the accounts identified above, Sequel Theatre'sledger includes the following: Accounts Receivable; AdmissionRevenue; Concession Revenue; Advertising Expense; Film RentalExpense; Interest Expense; and Salaries Expense.

Instructions

a. Journalize the May transactions.

b. Enter the beginning balances in the ledgeras at May 1. Use the ledger format provided in Illustration2.20.

c. Post the May journal entries to theledger.

d. Prepare a trial balance at the end ofMay.

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