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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