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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 the year.

Common stock was issued for $$22,000.$

During the year, Karleen's paid office rent of $$13,500.$

Utilities expenses incurred and paid were $$5,320.$

Wages of $$58,800$ were earned by employees and paid during the year.

During the year, Karleen's provided catering services:

Line Item Description Amount

On credit $$128,200$

For cash $18,650$

Karleen's paid $$59,110$ for supplies purchased and used during the year.

Karleen's paid dividends in the amount of $$3,500.$

Karleen's collected accounts receivable in the amount of $$109,400.$

Required:

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$1.$ Analyze the events for their effect on the accounting equation. If an amount box does not require an entry, leave it blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item $($i$.$e$.$ Asset, Liability$),$ enter $"0"$ since the net effect on the item is zero.