Mulberry Services sells electronic data processing services to firms too small to own their own computing equipment. Mulberry had the following accounts and account balances as of January 1, 2019:
Accounts Payable .......................................$ 14,000
Accounts Receivable ....................................130,000
Cash ..........................................................6,000
Common Stock ...........................................114,000
Interest Payable ..............................................8,000
Notes Payable (Long-term) ............................. 80,000
Prepaid Rent (Short-term) ...............................96,000
Retained Earnings, 12/31/2018 .........................16,000
During 2019, the following transactions occurred (the events described below are aggregations of many individual events):
a. During 2019, Mulberry sold $690,000 of computing services, all on credit.
b. Mulberry collected $570,000 from the credit sales in Transaction a and an additional $129,000 from the accounts receivable outstanding at the beginning of the year.
c. Mulberry paid the interest payable of $8,000.
d. Wages of $379,000 were paid in cash.
e. Repairs and maintenance of $9,000 were incurred and paid.
f. The prepaid rent at the beginning of the year was used in 2019. In addition, $28,000 of computer rental costs were incurred and paid. There is no prepaid rent or rent payable at year-end.
g. Mulberry purchased computer paper for $13,000 cash in late December. None of the paper was used by year-end.
h. Advertising expense of $26,000 was incurred and paid.
i. Income tax of $10,300 was incurred and paid in 2019.
j. Interest of $5,000 was paid on the long-term loan.