7.

The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances:

Account Title	Debits		Credits
Cash	31,400
Accounts receivable	13,500
Equipment	22,000
Accumulated depreciation			6,600
Salaries payable			7,750
Common stock			44,500
Retained earnings			8,050
Total	66,900		66,900

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

Sales of services, $116,000, of which $34,800 was on credit.

Collected on accounts receivable, $24,100.

Issued shares of common stock in exchange for $11,500 in cash.

Paid salaries, $42,250 (of which $7,750 was for salaries payable).

Paid miscellaneous expenses, $22,800.

Purchased equipment for $13,500 in cash.

Paid $2,800 in cash dividends to shareholders.

Accrued salaries at year-end amounted to $845.

Depreciation for the year on the equipment is $2,200.

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.