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answer all the questions, i will give you a thumb! thanks. 2. Analyze each transaction. Journalize as appropriate. (Note: Ignore the date because these events
answer all the questions, i will give you a thumb! thanks.
2. Analyze each transaction. Journalize as appropriate. (Note: Ignore the date because these events are aggregations of individual events.) 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, 2018: Accounts Payable Accounts Receivable Common Shares Cash Interest Payable Notes Payable (Long-Term) Prepaid Rent (Short-Term) Retained Earnings, 12/31/2017 $ 14,000 130,000 114,000 6,000 8.000 80,000 96,000 16,000 During 2018, the following transactions occurred (the events described below are aggregations of many individual events): a. During 2018, 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 2018. 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 2018. j. Interest of $5,000 was paid on the long-term loanStep by Step Solution
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