4.

[The following information applies to the questions displayed below.]

The general ledger of the Karlin Company, a consulting company, at January 1, 2016, contained the following account balances:

Account Title	Debits	Credits
Cash	29,000
Accounts receivable	17,500
Equipment	30,000
Accumulated depreciation		9,000
Salaries payable		9,750
Common stock		48,500
Retained earnings		9,250
Total	76,500	76,500

The following is a summary of the transactions for the year:

a.	Sales of services, $132,000, of which $39,600 was on credit.
b.	Collected on accounts receivable, $26,500.
c.	Issued shares of common stock in exchange for $15,500 in cash.
d.	Paid salaries, $48,250 (of which $9,750 was for salaries payable).
e.	Paid miscellaneous expenses, $26,000.
f.	Purchased equipment for $18,000 in cash.
g.	Paid $3,200 in cash dividends to shareholders.

1.	Accrued salaries at year-end amounted to $965.
2.	Depreciation for the year on the equipment is $3,000.

Required:

2., 5, & 8.

Prepare the summary, adjusting and closing entries for each of the transactions listed. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer :- Journal entries (for every summary transactions mentioned from a to g in the question).

Transactions	Particulars	Debit ($)	Credit ($)
a).	Cash A/c Dr. (132000 - 39600) Accounts receivable A/c Dr. To Service revenue A/c	92400 39600	132000
b).	Cash A/c Dr. To Accounts receivable A/c	26500	26500
c).	Cash A/c Dr. To Common stock A/c	15500	15500
d).	Salaries A/c Dr. (48250 - 9750) Salaries payable A/c Dr. To Cash A/c	38500 9750	48250
e).	Miscellaenous expenses A/c Dr. To Cash A/c	26000	26000
f).	Equipment A/c Dr. To Cash A/c	18000	18000
g).	Dividends (Retained earnings) A/c Dr. To Cash A/c	3200	3200

Adjusting journal entries

Transactions	Particulars	Debit($)	Credit($)
1). Accrued salaries during year end	Salaries A/c Dr. To Salaries payable A/c	965	965
2).Depreciation on equipment.	Depreciation A/c Dr. To Accumulated Depreciation A/c	3000	3000

5.

	Post the transactions, adjusting and closing entries into the appropriate t-accounts. (Enter the letter of the transaction in the column next to the amount.)

6.	Prepare an unadjusted trial balance.

7.	Prepare an adjusted trial balance.

8. 7-a.

Prepare an income statement for 2016.

9. 7-b.

Prepare a balance sheet as of December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)

10. Prepare a post-closing trial balance.