Question

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.

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'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 For cash $128,200 18,650 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.

Answer 1

Accounts + Equipment = Pavables Stock | + + + + + + + + Enter the Impact of each transaction on individual items of the accounting equation : Assets Liabilities + Equity Accounts, Common Cash - Dividends + Revenues - Expenses Receivables Payables Stock I $ 22,000 $ 22,000 $ 13,500) $ 13,500 $ (5,320) $ 5,320 $ (58,800) $ 58,800 $ 18,650 $ 1,28,200 $ 1,46,850 $ (59,110) $ 59,110 $ (3,500) $ 3,500 $1,09,400 + $ (1,09,400) + + + + + + + + o ovo ovos + + + + + + + + + + + + + + +

2. Journal Entries : S.No Particulars Debit Credit Cash Common Stock $ 22,000 $ 22,000 é Office Rent Expense Cash $ 13,500 $ 13,500 o Utilities Expense Cash $ 5,320 $ 5,320 d. $ 58,800 Wages Expense Cash $ 58,800 o Accounts Receivables Cash Revenue $ 1,28,200 $ 18,650 $ 1,46,850 w $ 59,110 Supplies Expense Cash $ 59,110 g. Dividends Expense Cash 3,500 $ 3,500 Cash Accounts Receivables $ 1,09,400 $ 1,09,400

3. Posting the Entries to T-Accounts: Cash Particulars Amount ($) Particulars Common Stock $ 22,000 Office Rent Expense Revenue $ 18,650 Utilities Expense Accounts Receivables $ 1,09,400 Wages Expense Supplies Expense Dividends Expense Balance c/f $1,50,050 Amount ($) $ 13,500 $ 5,320 $ 58,800 59,110 $ 3,500 9,820 $ 1,50,050 Particulars Common Stock Amount ($) Particulars Cash $ 22,000 $ 22,000 Amount ($) $ 22,000 Balance c/f $ 22,000 Particulars Cash Office Rent Expense Amount ($) ParticularsA mount ($) $ 13,500 $ 13,500 Utilities Expense Amount ($) Particulars $ 5,320 Particulars Cash Amount ($) $ 5,320 $ - Wages Expenses Amount ($) Particulars $ 58,800 Particulars Cash Amount ($) $ 58,800 $ -

Particulars Revenue prev Particulars Accounts Receivables Amount ($) Particulars $ 1,28,200 Cash Balance c/f $ 1,28,200 Amount ($) $ 1,09,400 $ 18,800 $ 1,28,200 Supplies Expenses Amount ($) Particulars $ 59,110 Particulars Cash Amount ($) $ 59,110 $ - Dividend Expenses Amount ($) Particulars $ 3,500 Particulars Cash Amount ($) $ 3,500 $ - Particulars Revenue Amount ($) Particulars Cash Accounts Receivables Amount ($) $ 18,650 $ 1,28,200 $ - $ 1,46,850

Credit $ 22,000 $ 1,46,850 4. Prepare a Trial Balance : Particulars Debit Cash $ 9,820 Accounts Receivables $ 18,800 Common Stock Revenue Office Rent Expense $ 13,500 Utilities Expense $ 5,320 Wages Expense $ 58,800 Supplies Expense $ 59,110 Dividends Expense $ 3,500 Total $1,68,850 $1,68,850