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 2018. a. Common shares were issued for $22,000.
b. During the year, Karleen paid office rent of $13,500.
c. Utility 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 cash18,650
f. Karleen's paid $59,110 for supplies purchased and used during the year.
g. Karleen's declared and paid dividends in the amount of $3,500.
h. Karleen's declared and paid dividends in the amount of $3,500.
i. Karleen's collected accounts receivable in the amount of $109,400.
Required:
1. Analyze the events for their effect on the basic accounting equation.
2. Prepare journal entries.
3. Post the journal entries to T-accounts.
4. Prepare a trial balance on December 31, 2018. Assume that all beginning account balances at January 1, 2018, are zero.