The Accounting Cycle}
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:

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 collected accounts receivable in the amount of \(\$ 109,400\).
\section*{Required:}
1. Analyze the events for their effect on the basic accounting equation.
2. Prepare journal entries. (Note: Ignore the date because these events are aggregations of individual events.)
3. Post the journal entries to T-accounts.
4. Prepare a trial balance at December 31, 2018. Assume that all beginning account balances at January 1, 2018, are zero.

Transcribed Image Text:

On credit For cash $128,200 18,650