Acct611 Sundries Cinema Page 1 of 4

Sundries Cinema
Shown on the wrksht tab are the November 30, 2021, account balances of Sundries Cinema, which is owned
by Theater Incorporated. The temporary account balances represent the results of entries recorded during the
first 11 months of 2021, and the balance in Theater’s common stock and retained earnings accounts have not
changed since December 31, 2020. Currently, 5,000 shares of stock are outstanding and 20,000 shares
have been authorized. All income tax effects are to be ignored for this case.

December Transactions
Dec 5 Paid accounts payable of $5,950.
Dec 6 Paid movie rental of $7,500.
Dec 6 Deposited and earned $17,000 of admission receipts
Dec 7 Purchased supplies, $920, on account.
Dec 9 Earned and deposited more admission receipts, $580.
Dec 10 Purchased $3,150 of concessions items on credit.
Dec 12 Acquired additional equipment worth $24,000 by paying $500 cash and giving a long-term
note payable for the balance.
Dec 14 Paid wages of $15,200 for the period December 1 through 14.
Dec 16 Paid for the supplies purchased on December 7.
Dec 17 Purchased $1,900 of supplies on credit.
Dec 19 Sold 500 shares of $10 par value common stock for $10 a share.
Dec 21 Earned and deposited $21,750 from concessions sales and $11,660 of admissions receipts.
Dec 24 Paid $1,500 for repairs to roof and marquee for weather damage.
Dec 25 Purchased $9,200 of concessions items on account.
Dec 27 Paid for the supplies purchased Dec. 17.
Dec 28 Paid wages of $16,720 for the period December 15 through 28.
Dec 30 Paid $2,400 to newspaper for advertisements that appeared in December.
Dec 31 Earned and deposited $22,000 from admissions receipts and $18,850 from concessions sales.
Dec 31 Declared and paid the annual dividend, amounting to $6,600.
Dec 31 Utilities for December were $2,900, paid in cash.
Dec 31 Movie rental expense for December was $8,700, paid in cash.
Dec 31 The cost of the concessions sold was $12,600 for December. Decrease Concessions inventory and
record as Concessions expense.
(concluded on next page)
Acct611 Sundries Cinema Page 2 of 4

Instructions:
1 Record each of the above transactions into the worksheet provided.
2 Total each of the accounts in the worksheet. Make sure the worksheet balances.
3 Link revenues and expenses to the income statement. Finish the income statement, arriving at
net income or net loss.
4 Complete the statement of retained earnings. First enter the beginning balance of retained earnings.
Second, link net income from the income statement to net income on the statement
of retained earnings. Third, link dividends from the worksheet to the statement of retained earnings.
5 Prepare the balance sheet. Link each of the assets, liabilities, and capital stock from the worksheet
to the balance sheet. Link retained earnings from the statement of retained earnings to the balance
sheet. Remember, the balance sheet must balance, A = L + SE.
6 I have already formatted your worksheets, but please be sure that:
a) Worksheet: (1) center the account names, (2) center all numbers for transactions recorded,
(3) prepare column borders around all cells in the transactions area such that numbers can easily
be traced to dates, (4) format the numbers properly, using comma separators (I suggest using
"number" format to -0- decimal places.
Also, make sure the worksheet either is fitted to one page, or if it crosses a page, it must be
referenced from one page to the other appropriately. In the case of this problem, I suggest
landscaping the worksheet and fitting it to one page, as long as the result is not too small to
read in printed form.
b) Financial statements: (1) format the numbers properly, be sure they have comma separators. I
suggest using "Accounting" format to -0- decimal places, (2) place appropriate cell borders above
and below subtotals and totals.

ALL TOTALS AND SUBTOTALS, AND ANYTHING ELSE INVOLVING A MATH OPERATION, MUST BE
IN THE FORM OF A FORMULA.
MAKE SURE ANSWERS TO NOT CROSS PAGE BREAKS, UNLESS REFERENCED APPROPRIATELY.
 Sundries Cinema

A S S E T S LIABILITIES S T O C K H O L D E R S' E Q U I T Y
Concess- Long- Ad- Con- Movie Con- Adver- Maint-
ions Supplies Equip- Accounts term note Common Retained Divi- missions cessions Wage rental cessions Utilities tising enance
Cash Inventory inventory ment Building payable payable Stock earnings dends revenue revenue expense expense expenese expense expense expense
11/30/2021 16,000 11,200 9,200 155,600 385,500 19,220 42,000 60,000 270,860 415,800 528,650 (420,200) (186,000) (118,230) (15,600) (6,200) (12,800)
5-Dec (5,950) (5,950)
6-Dec (7,500) (7,500)
6-Dec 17,000 17,000
7-Dec 920 920
9-Dec 580 580
10-Dec 3,150 3,150
12-Dec (500) 24,000 23,500
14-Dec (15,200) (15,200)
16-Dec (920) (920)
17-Dec 1,900 1,900
19-Dec 5,000 5,000
21-Dec 33,410 11,660 21,750
24-Dec (1,500) (1,500)
25-Dec 9,200 9,200
27-Dec (1,900) (1,900)
28-Dec (16,720) (16,720)
30-Dec (2,400) (2,400)
31-Dec 40,850 22,000 18,850
31-Dec (6,600) (6,600)
31-Dec (2,900) (2,900)
31-Dec (8,700) (8,700)
31-Dec (12,600) (12,600)

Total 42,050 10,950 12,020 179,600 385,500 25,620 65,500 65,000 270,860 (6,600) 467,040 569,250 (452,120) (202,200) (130,830) (18,500) (8,600) (14,300)

Assets 630,120
Liabilities and Stockholers' Equity 630,120
 Sundries Cinema Sundries Cinema
Income Statement Balance Sheet
Year ended December 31, 2021 December 31, 2021

Revenues Assets
Admissions revenue $ 467,040 Cash $ 42,050
Concessions revenue 569,250 Concessions inventory 10,950
Total revenues 1,036,290 Supplies inventory 12,020
Expenses Equipment 179,600
Wage expense 452,120 Building 385,500
Movie rental expense 202,200 Total assets $ 630,120
Concessions expense 130,830
Utilities expense 18,500 Liabilities
Advertising expense 8,600 Accounts payable $ 25,620
Maintenance expense 14,300 Long-term note payable 65,500
Total expenses 826,550 Total liabilities 91,120
Net income $ 209,740 Stockholders' Equity
Common stock 65,000
Sundries Cinema Retained earnings 474,000
Statement of Retained Earnings Total stockholders' equity 539,000
Year ended December 31, 2021 Total liabilities and stockholders' equity $ 630,120
Retained earnings, January 1 $ 270,860
Add net income 209,740
Less dividends (6,600)
Retained earnings, December 31 $ 474,000