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:

Investment

The commitment of resources such as capital or time to an endeavor with the expectation of obtaining an income or profit.

Percentage Total Return

A measure of the performance of an investment, calculated by dividing the investment's profit by its initial cost.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Capital Gains Yield

The appreciation in the price of an investment, calculated as the increase in the investment's value divided by its initial purchase price.