s of January 1, 2003, Kendrick Corporation had the following balances in its general ledger:

f. Paid salaries expense of $60,000. g. Paid utilities of $6,300. h. Paid installment of $5,000 on note. 1. Prepare journal entries to record each listed transaction. (Omit explanations.) 2. Set up T-accounts with the proper account balances at January 1, 2003, post the journal entries to the T-accounts, and prepare a trial balance for Kendrick Corporation at December 31, 2003. 3. Interpretive Question: If the debit and credit columns of the trial balance are in balance, does this mean that no errors have been made in journalizing the transactions? Explain.

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Debits Credits Cash Accounts Receivable Inventory Office Building. Accounts Payable. Mortgage Payable Notes Payable $ 31,500 23,500 Capital Stock Retained Earnings Totals. 92,000 208,000 $ 16,500 180,000 68,500 57,500 32,500 $355,000 $355,000 Kendrick had the following transactions during 2003. All expenses were paid in cash, un- less otherwise stated. a. Accounts Payable as of January 1, 2003, were paid off. b. Purchased inventory for $35,000 cash. c. Collected $21,000 of receivables. d. Sold $185,000 of merchandise, 85% for cash and 15% for credit. The Cost of Goods Sold was $98,500. c. Paid $25,000 mortgage payment, of which $15,000 represents interest expense.