Prepare General Journal Entries to Record the Following Transactions $\$ 100,000$

question 43

Essay

Prepare general journal entries to record the following transactions.Omit the explanations after each entry.
Mar. 1 J. Lynch invested in a neighborhood movie house. Land, $\$ 100,000$ ; building, $\$ 400,000$ ; and equipment, $\$ 50,000$ ; totaling $\$ 550,000$ .
2 Rental expense for the movies shown for the month, $\$ 6,000$ on account.
5 Ticket sales for the month, $\$ 22,000$ cash.
8 Wages paid for the month, $\$ 11,000$ .
12 Purchased a new popcorn machine, $\$ 3,300$ on account.
17 Paid monthly fee to maintenance company, $\$ 2,700$ .
23 Rented the theater to an organization for a night. Billed them $\$ 2,300$ .
30 Paid $\$ 600$ on the amount owed for the new popcorn machine.

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Definitions:

Patent

A legal document granted by the government giving an inventor exclusive rights to make, use, and sell an invention for a certain number of years.

Office Supplies

Items used in an office on a regular basis, such as paper, pens, and envelopes, which are consumed in use and need regular replenishment.

Temporary Accounts

Accounts used to record transactions within a specific accounting period, which are then closed and transferred to permanent accounts at the end of the period to prepare the company's financial statements.

Retained Earnings

The portion of net profits not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.