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.