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The Campus Theater adjusts its accounts every month. Below is the companys unadjusted trial balance dated August 31, 2002. Additional information is provided for use in preparing the companys adjusting entries for the month of August. (Bear in mind that adjusting entries have already been made for first seven months of 2002, but not for August.)

Campus Theater

Unadjusted Trial Balance

August 31, 2002

Cash $ 20,000

Prepaid film rental 31,200

Land 120,000

Building 168,000

Accumulated depreciation: building $ 14,000

Fixtures and equipment 36,000

Accumulated depreciation: fixtures and equipment 12,000

Notes payable 180,000

Accounts payable 4,400

Unearned admissions revenue (YMCA) 1,000

Income taxes payable 4,740

Capital stock 40,000

Retained earnings 46,610

Dividends 15,000

Admissions revenue 305,200

Concessions revenue 14,350

Salaries expense 68,500

Film rental expense 94,500

Utilities expense 9,500

Depreciation expense: building 4,900

Depreciation expense: fixtures and equipment 4,200

Interest expense 10,500

Income taxes expense 40,000

$622,300 $622,300

Other Data

1. Film rental expense for the month is $15,200. However, the film rental expense for several months has been paid in advance.
2. The building is being depreciated over a period of 20 years (240 months).
3. The fixtures and equipment are being depreciated over a period of 5 years (60 months).
4. On the first of each month, the theater pays the interest which accrued in the prior month on its note payable. At August 31, accrued interest payable on this note amounts to $1,500.
5. 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.
6. 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. (Credit Concessions Revenue.)
7. 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.
8. Income taxes expense for August is estimated at $4,200. This amount will be paid in the September 15 installment payment.
9. Utilities expense is recorded as monthly bills are received. No adjusting entries for utilities expense are made at month-end.

Instructions

1. Prepare Adjusted Trial Balance
2. From the Adjusted Trial Balance Prepare: Income Statement, Balance Sheet & Statement of Owners Equity

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