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, 2019:

Accounts Payable	$ 14,000
Accounts Receivable	130,000
Cash	6,000
Common Stock	114,000
Interest Payable	8,000
Notes Payable (Long-term)	80,000
Prepaid Rent (Short-term)	96,000
Retained Earnings, 12/31/2018	16,000

During 2019, the following transactions occurred:

a.	During 2019, 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 2019. 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 2019.
j.	Interest of $5,000 was paid on the long-term loan.

Required:

1.

The account title for each T-account has been provided. Based on the data provided, enter the applicable beginning balances.

2.

Analyze each transaction. Journalize as appropriate.

3.

Post your journal entries to T-accounts. Add additional T-accounts when needed.

4.

Use the ending balances in the T-accounts to prepare a trial balance.

CHART OF ACCOUNTS

Mulberry Services

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
122	Notes Receivable
123	Supplies
124	Prepaid Insurance
125	Prepaid Rent
126	Inventory
131	Land
132	Buildings
133	Equipment
134	Furniture
135	Trucks
139	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
212	Notes Payable
213	Income Taxes Payable
214	Wages Payable
215	Utilities Payable
216	Insurance Payable
217	Interest Payable
218	Rent Payable
219	Unearned Service Revenue
231	Bonds Payable

	EQUITY
311	Common Stock
321	Retained Earnings
331	Dividends

	REVENUE
411	Sales Revenue
412	Service Revenue
413	Interest Income

	EXPENSES
511	Cost of Goods Sold
512	Advertising Expense
513	Supplies Expense
514	Utilities Expense
515	Rent Expense
516	Insurance Expense
517	Repairs and Maintenance Expense
521	Wages Expense
531	Interest Expense
532	Depreciation Expense
533	Income Taxes Expense