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This is the trial balance of Mimosa Company on September 30. MIMOSA COMPANY Tria

ID: 2364969 • Letter: T

Question

This is the trial balance of Mimosa Company on September 30.

MIMOSA COMPANY

Trial Balance September 30, 2012

Debit Credit

Cash $ 8,200

Accounts Receivable 2,600

Supplies 2,100

Equipment 8,000

Accounts Payable $ 4,800

Unearned Service Revenue 1,100

Common Stock 15,000

------------------------

$20,900 $20,900


The October transactions were as follows.

Oct. 5 Received $1,300 in cash from customers for accounts receivable due.

10 Billed customers for services performed $5,100.

15 Paid employee salaries $1,200.

17 Performed $600 of services for customers who paid in advance in August.

20 Paid $1,900 to creditors for accounts payable due.

29 Paid a $300 cash dividend. 31 Paid utilities $400.


Instructions

(a) Prepare a general ledger using T accounts. Enter the opening balances in the ledger accounts as of October 1. Provision should be made for these additional accounts: Dividends, Service Revenue, Salaries and Wages Expense, and Utilities Expense.

(b) Journalize the transactions, including explanations.

(c) Post to the ledger account

Explanation / Answer

Oct. 5 Received $1,300 in cash from customers for accounts receivable due. Dr Cash $1,300 Cr AR $1,300 10 Billed customers for services performed $5,100. Dr AR $5,100 Cr Services revenue $5,100 15 Paid employee salaries $1,400. Dr Salaries expense $1,400 Cr Cash $1,400 17 Performed $600 of services for customers who paid in advance in August. Dr Unearned Revenue 600 Cr Services revenue 600 20 Paid $1,500 to creditors for accounts payable due. Dr AP $1,500 Cr Cash $1,500 29 Paid a $300 cash dividend. Dr Dividend $300 Cr Cash $300 31 Paid utilities $500. Dr Utilities expense $500 Cr Cash $500 After you've put through the above entries, your trial balance will look like this: Debit side: Cash $5,900 Accounts Receivable 6,400 Supplies 2,100 Equipment 8,000 Salaries expense 1,400 Utilities expense 500 Dividends 300 Total debits $24,600 Credit side: Accounts Payable $3,600 Unearned Revenue 300 Common Stock 15,000 Services revenue 5,700 Total credits $24,600

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