Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 27

Short Comprehensive Problem
Ahuna, Inc., provides in-home cooking lessons to its clients. The company's trial balance dated Mar ch 1 ,2011, is shown below:
Ahuna engaged in the following transactions in March:
Instructions
a. Record the company's March transactions in general journal form. Include a brief explanation of the transaction as part of each journal entry.
b. Post each entry to the appropriate ledger accounts (use the T account format illustrated in Exhibit 3-8 on page 108).
c. Prepare a trial balance dated March 31, 2011. (Hint: Retained Earnings will be reported at the same amount as it was on March I. Accounting for changes in the Retained Earnings account resulting from revenue, expense, and dividend activities is discussed in Chapter 5.)
d. Has the company paid all of the dividends that it has declared? Explain.