Short Comprehensive Problem

Ahuna, Inc., provides in-home cooking lessons to its clients. The following is the companys trial balance dated March 1, current year.

huna engaged in the following transactions in March.

Mar. 3Collected a $1,200 account receivable from Kim Mitchell. Mar. 11Purchased cooking supplies for $700 cash. Mar. 15Paid $200 of outstanding accounts payable. Mar. 20Issued additional shares of capital stock for $4,000 cash. Mar. 24Recorded $6,200 of client revenue on account. Mar. 27Paid March salaries of $900. Mar. 30Recorded and paid March travel expenses of $400. Mar. 31Recorded $300 in printing expenses for recipe books. Payment is due April 12. Instructions

Record the companys March transactions in general journal form. Include a brief explanation of the transaction as part of each journal entry.

Post each entry to the appropriate ledger accounts (use the T account format illustrated in Exhibit 38).

Prepare a trial balance dated March 31, current year. (Hint: Retained Earnings will be reported at the same amount as it was on March 1. Accounting for changes in the Retained Earnings account resulting from revenue, expense, and dividend activities is discussed in Chapter 5.)

Has the company paid all of the dividends that it has declared? Explain.

AHUNA, INC. TRIAL BALANCE MARCH 1, CURRENT YEAR Cash Accounts receivable Cooking supplies Accounts payable. Dividends payable Dividends. Capital stock. Retained earnings Client revenue. Salaries expense Travel expense. Printing expense $5,7001,8008005003,1001,500600$14,000$14,000$3005006,0001,4005,800 AHUNA, INC. TRIAL BALANCE MARCH 1, CURRENT YEAR Cash Accounts receivable Cooking supplies Accounts payable. Dividends payable Dividends. Capital stock. Retained earnings Client revenue. Salaries expense Travel expense. Printing expense $5,7001,8008005003,1001,500600$14,000$14,000$3005006,0001,4005,800