Question
Instructions: 1. Set up the following T accounts: Cash, Accounts Receivable; Cleaning Supplies, Prepaid Lease, Cleaning Equipment, Accounts Payable, Common Stock, Dividends, Cleaning Revenue, and
Instructions:
1. Set up the following T accounts: Cash, Accounts Receivable; Cleaning Supplies, Prepaid Lease, Cleaning Equipment, Accounts Payable, Common Stock, Dividends, Cleaning Revenue, and Repair Expense.
2. Record the transactions directly in the T accounts, identify each entry by date.
3. Prepare a trial balance for Mori Upholstery Cleaning, Inc., as of October 20xx
Hiroshi Mori began an upholstery cleaning business on October 1 and engaged in the following transactions during the month: Oct. 1 Began business by depositing $12,000 in a bank account in the name of the corporation in exchange for 12,000 shares of $1 par value common stock.
2 Ordered cleaning supplies, $1,000.
3 Purchased cleaning equipment for cash, $2,800
4 Made two months' van lease payment in advance, $1,200.
7 Received the cleaning supplies ordered on October 2 and agreed to pay half the amount in 10 days and the rest in 30 days
9 Paid for repairs on the van with cash, $80.
12 Received cash for cleaning upholstery, $960.
17 Paid half the amount owed on supplies purchased on October 7, $500
21 Billed customers for cleaning upholstery, $1,340.
24 Paid cash for addition repairs on the van, $80.
27 Received $600 from the customers billed on October 21.
31 Declared and paid a divdend of $700.
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