Following is the trial balance of Cirose Cinema for the month ended on 31 January 2020. Particular Dr Cr Cash Rs. 45,000 Prepaid film rentals 325,000 Projection Equipment 1,520,000 Accumulated depreciation on equipment Rs. 152,000 Accounts Payable
To complete the requested tasks, we'll first go through the necessary adjustments based on the provided information, then prepare the required statements and entries step-by-step.
### A) Month-End Adjusting Accounting Entries
Based on the additional information provided, the adjusting entries would be as follows:
1. **Accrued Rent Expense**
- Dr Rent Expense Rs. 140,000
- Cr Accounts Payable Rs. 140,000
2. **Adjustment for Film Rentals**
- Dr Film Rentals Expense Rs. 150,000
- Cr Prepaid Film Rentals Rs. 150,000
3. **Depreciation on Projection Equipment**
- Annual Depreciation = Rs. 1,520,000 * 10% = Rs. 152,000
- Monthly Depreciation = Rs. 152,000 / 12 = Rs. 12,666.67 (approx. Rs. 12,667)
- Dr Depreciation Expense Rs. 12,667
- Cr Accumulated Depreciation Rs. 12,667
4. **Unearned Revenues Earned**
- Dr Unearned Ticket Revenues Rs. 6,000
- Cr Ticket Revenues Rs. 6,000
5. **Accrued Salaries**
- Dr Salaries Expenses Rs. 28,000
- Cr Accounts Payable Rs. 28,000
### B) 10-Column Worksheet
The worksheet is structured as follows: Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet.
| Particulars | Trial Balance Dr | Trial Balance Cr | Adjustments Dr | Adjustments Cr | Adjusted Trial Balance Dr | Adjusted Trial Balance Cr | Income Statement Dr | Income Statement Cr | Balance Sheet Dr | Balance Sheet Cr |
|------------------------------|------------------|------------------|----------------|----------------|--------------------------|--------------------------|--------------------|--------------------|------------------|------------------|
| Cash | 45,000 | | | | 45,000 | | | | 45,000 | |
| Prepaid Film Rentals | 325,000 | | 150,000 | | 175,000 | | | | | |
| Projection Equipment | 1,520,000 | | | | 1,520,000 | | | | | |
| Accumulated Depreciation | | 152,000 | | | | 164,667 | | | | |
| Accounts Payable | | 100,000 | 140,000 | 28,000 | | 268,000 | | | | |
| Unearned Ticket Revenues | | 10,000 | 6,000 | | | 4,000 | | | | |
| Capital | | 1,500,000 | | | | 1,500,000 | | | | |
| Ticket Revenues | | 670,000 | 6,000 | | | 676,000 | | 676,000 | | |
| Utilities Expenses | 320,000 | | | | 320,000 | | 320,000 | | | |
| Salaries Expenses | 222,000 | | 28,000 | | 250,000 | | 250,000 | | | |
| Total | 2,432,000 | 2,432,000 | | | 2,432,000 | 2,432,000 | 250,000 | 676,000 | 45,000 | 1,500,000 |
### C) Financial Statements
#### 1. Income Statement
```plaintext
Cirose Cinema
Income Statement
For the Month Ended 31 January 2020
Revenues:
Ticket Revenues Rs. 676,000
Total Revenues Rs. 676,000
Expenses:
Utilities Expenses Rs. 320,000
Salaries Expenses Rs. 250,000
Film Rentals Expense Rs. 150,000
Depreciation Expense Rs. 12,667
Total Expenses Rs. 732,667
Net Loss Rs. -56,667
```
#### 2. Statement of Changes in Equity
```plaintext
Cirose Cinema
Statement of Changes in Equity
For the Month Ended 31 January 2020
Beginning Capital Rs. 1,500,000
Add: Net Loss Rs. -56,667
Ending Capital Rs. 1,443,333
```
#### 3. Balance Sheet
```plaintext
Cirose Cinema
Balance Sheet
As of 31 January 2020
Assets
Cash Rs. 45,000
Prepaid Film Rentals Rs. 175,000
Projection Equipment Rs. 1,520,000
Accumulated Depreciation Rs. -164,667
Total Assets Rs. 1,575,333
Liabilities
Accounts Payable Rs. 268,000
Unearned Ticket Revenues Rs. 4,000
Total Liabilities Rs. 272,000
Equity
Capital Rs. 1,443,333
Total Liabilities and Equity Rs. 1,575,333
```
### D) Closing Entries
Closing entries transfer balances from temporary accounts to permanent accounts:
1. Close Revenues to Income Summary:
- Dr Ticket Revenues Rs. 676,000
- Cr Income Summary Rs. 676,000
2. Close Expenses to Income Summary:
- Dr Income Summary Rs. 732,667
- Cr Utilities Expenses Rs. 320,000
- Cr Salaries Expenses Rs. 250,000
- Cr Film Rentals Expense Rs. 150,000
- Cr Depreciation Expense Rs. 12,667
3. Close Income Summary to Retained Earnings (or Capital):
- Dr Income Summary Rs. 56,667
- Cr Capital Rs. 56,667
### E) Post-Closing Trial Balance
After closing entries, the Post-Closing Trial Balance will contain only permanent accounts.
| Particulars | Dr | Cr |
|------------------------------|--------------|--------------|
| Cash | 45,000 | |
| Prepaid Film Rentals | 175,000 | |
| Projection Equipment | 1,520,000 | |
| Accumulated Depreciation | | 164,667 |
| Accounts Payable | | 268,000 |
| Unearned Ticket Revenues | | 4,000 |
| Capital | | 1,443,333 |
| Total | 1,740,000 | 1,740,000 |
This concludes the preparation of adjusting entries, financial statements, closing entries, and post-closing trial balance for Cirose Cinema for the month ended January 31, 2020.