1 Problem 2-6 Accounting cycle [LO2-2, 2-3, 2-4, 2-5, 2-6, 2-7] 33.33 points The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances: Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits Credits 31,100 14,000 23,000 6,900 8,000 45,000 8,200 68, 100 68,100 The following is a summary of the transactions for the year: a. Sales of services, $118,000, of which $35,400 was on credit. b. Collected on accounts receivable, $24,400. c. Issued shares of common stock in exchange $12,000 in cash. d. Paid salaries, $43,000 (of which $8,000 was for salaries payable). e. Paid miscellaneous expenses, $23,200. f. Purchased equipment for $14,000 in cash. g. Paid $2,850 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $860. 2. Depreciation for the year on the equipment is $2,300. Required: 2., 5. & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed. 3. Post the transactions, adjusting and closing entries into the appropriate t-accounts. 4. Prepare an unadjusted trial balance. 6. Prepare an adjusted trial balance. 7-a. Prepare an income statement for 2018. 7-b. Prepare a balance sheet as of December 31, 2018. 9. Prepare a post-closing trial balance. Journal entry worksheet 1 5 6 7 8 8 9 10 11 12 Record the entry to close the revenue accounts using the income summary. Note: Enter debits before credits. Debit Credit Event 10 General Journal Sales revenue Income summary Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the entry to close the expense accounts using the income summary. Note: Enter debits before credits. General Journal Debit Credit Event 11 Record entry Clear entry View general journal Journal entry worksheet Record the entry to close the income summary account. Note: Enter debits before credits. General Journal Debit Event 12 Credit Record entry Clear entry View general journal 4. Prepare an unadjusted trial balance. 6. Prepare an adjusted trial balance. 7-a. Prepare an income statement for 2018. 7-b. Prepare a balance sheet as of December 31, 2018. 9. Prepare a post-closing trial balance. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 25 and 8 Req3 Reg 4 Reg 6 Reg 7A Req 7B Req9 Prepare an income statement for 2018. KARLIN COMPANY Income Statement For the Year Ended December 31, 2018 Service revenue $ 118,000 Miscellaneous expense Salaries expense Depreciation expense 35,860 23,200 2,300 Total operating expenses Net income 61,360 56,640 Reg 2 5 and 8 Reg 3 Reg 4 Reg 6 Req 7A Reg 7B Req 9 Prepare a balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated by a minus si KARLIN COMPANY Balance Sheet December 31, 2018 0 0 0 0 $ 0