(Solved by Humans)-Problem 3-7 Transaction Analysis and Journal Entries Recorded Directly in T Accounts Four...

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Problem 3-7 Transaction Analysis and Journal Entries Recorded Directly in T Accounts Four brothers organized Beverly Entertainment Enterprises on October 1. The following trans- actions occurred during the first month of operations: October 1:          Received contributions of $10,000 from each of the four principal owners of the new business in exchange for shares of stock. October 2:          Purchased the Ace Theater for $125,000. The seller agreed to accept a down payment of $12,500 and a seven-year promissory note for the balance. The Ace property consists of land valued at $35,000 and a building valued at $90,000. (Continued ) LO3• 4• 5             October 3:          Purchased new seats for the theater at a cost of $5,000, paying $2,500 down and agreeing to pay the remainder in 60 days. October 12:        Purchased candy, popcorn, cups, and napkins for $3,700 on an open account. The company has 30 days to pay for the concession supplies. October 13:        Sold tickets for the opening-night movie for cash of $1,800 and took in $2,400 at the concession stand. October 17:        Rented out the theater to a local community group for $1,500. The community group is to pay one-half of the bill within five working days and has 30 days to pay the remainder. October 23:        Received 50% of the amount billed to the community group. October 24:        Sold movie tickets for cash of $2,000 and took in $2,800 at the concession stand. October 26:                   The four brothers, acting on behalf of Beverly Entertainment, paid a dividend of $750 on the shares of stock owned by each of them, or $3,000 in total. October 27:        Paid $500 for utilities. October 30:        Paid wages and salaries of $2,400 total to the ushers, projectionist, concession stand workers, and maintenance crew. October 31:        Sold movie tickets for cash of $1,800 and took in $2,500 at the concession stand. Required 1.        Prepare a table to summarize the preceding transactions as they affect the accounting equa- tion. Use the format in Exhibit 3-1. Identify each transaction with a date. 2.        Record each transaction directly in T accounts using the dates preceding the transactions to identify them in the accounts. Each account involved in the problem needs a separate T account.