Karleen s Catering Service provides catered meals to individuals and businesses
Karleen’s Catering Service provides catered meals to individuals and businesses. Karleen’s purchases its food ready to serve from Mel’s Restaurant. In order to prepare a realistic trial balance, the events described below are aggregations of many individual events during 2011.
a. Common stock was issued for $22,000.
b. During the year, Karleen’s paid office rent of $13,500.
c. Utilities expenses incurred and paid were $5,320.
d. Wages of $58,800 were earned by employees and paid during the year.
e. During the year, Karleen’s provided catering services:
On credit ......... $128,200
For cash ........ 18,650
f. Karleen’s paid $59,110 for supplies purchased and used during the year.
g. Karleen’s paid dividends in the amount of $3,500.
h. Karleen’s collected accounts receivable in the amount of $109,400.
Required:
1. Analyze the events for their effect on the accounting equation.
2. Prepare journal entries.
3. Post the journal entries to ledger accounts.
4. Prepare a trial balance at December 31, 2011. Assume that all beginning account balances at January 1, 2011, are zero.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help