This is the trial balance of Dirty Laundry Corporation on September 30:

The October transactions were as follows:
Oct. 5 Received $900 cash from customers on account.
10 Billed customers for services performed, $3,500.
15 Paid employee salaries, $1,200.
17 Performed $600 of services for customers who paid in advance in August.
20 Paid $1,600 to creditors on account.
29 Paid a $500 cash dividend.
31 Paid utilities, $700.
Instructions

(a) Prepare a general ledger using T accounts. Enter the opening balances in the ledger accounts as of October 1. Provision should be made for these additional accounts:
Dividends, Laundry Revenue, Salaries Expense, and Utilities Expense.

(b) Journalize the transactions, including explanations.

(c) Post to the ledger accounts.

(d) Prepare a trial balance on October 31, 2001.

Transcribed Image Text:

DIRTY LAUNDRY Trial Balance September 30, 2001 Debit Credit Cash $ 8,500 Accounts Receivable 2,200 Supplies 1,700 Equipment 8,000 Accounts Payable $ 5,000 Unearned Revenue 700 Common Stock 14,700 $20,400 $20,400