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? Problem 2 - 7 2 B Comprehensive Problem Mulberry Services sells electronic data processing services to firms too small to own their own computing
? Problem B
Comprehensive Problem
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 ?:
During ?the following transactions occurred the events described below are aggregations of many individual events: Required:
Establish Taccounts for the accounts listed above and enter the beginning balances. Use a chart of accounts to order the Taccounts.
Post your journal entries to the Taccounts. If a balance is zero, enter zero
Cash
Accounts Receivable
Prepaid Rent
Supplies j
Paid interest
Use the ending balances in the Taccounts to prepare a trial balance. For those boxes in which no entry is required, leave the box blank.
Mulberry Services
Trial Balance
December ?Accounts Payable
Interest Payable
Common Shares
Retained Earnings
Service Revenue
Rent Expense Advertising Expense
Repairs & Maintenance Expense
Interest Expense
Income Tax Expense
Analyze each transaction. Journalize as appropriate. Note: Ignore the date because these events are aggregations of individual events. ?For a compound transac
a ?During ?Mulberry sold $ ?of computing services, all on credit.
b ?Mulberry collected $ ?from the credit sales in transaction a and an additional $ ?from the accounts receivable outstanding at the beginning of the year.
c ?Mulberry paid the interest payable of $
d ?Wages of $ ?were paid in cash.
e ?Repairs and maintenance of $ ?were incurred and paid.
f ?The prepaid rent at the beginning of the year was used in ?In addition, $ ?of computer rental costs were incurred and paid. There is no prepaid rent or re
payable at yearend.
g ?Mulberry purchased computer paper for $ ?cash in late December. None of the paper was used by yearend.
h ?Advertising expense of $ ?was incurred and paid.
i ?Income tax of $ ?was incurred and paid in
j ?Interest of $ ?was paid on the longterm loan.
Required: Required:
Establish Taccounts for the accounts listed above and enter the beginning balances. Use a chart of accounts to order the
Post your journal entries to the Taccounts. If a balance is zero, enter zero
Cash
Accounts Receivable
Prepaid rent
HELP WITH ACCOUNTS and TRIAL BALANCE use the format properly, thank you,
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