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 2009.

a. During the year, Karleen’s paid office rent of $11,500.

b. Telephone expenses incurred and paid were $950.

c. Wages of $67,400 were earned by employees and paid during the year.

d. During the year, Karleen’s provided catering services:

On credit $142,100 For cash 21,700

e. Karleen’s paid $62,100 for food and beverage supplies purchased.

f. Karleen’s paid dividends in the amount of $4,000.

g. Karleen’s collected accounts receivable in the amount of $134,200.

Required:

. Analyze the events for their effect on the accounting equation.

. Prepare journal entries (ignore the date since these events are aggregations of individual events).

. Post the journal entries to ledger accounts.

. Prepare a trial balance. Assume that all beginning account balances at January 1, 2009, are zero.