ACCT 2101 Final Project

Fall 2022

The general ledger of Karlin Company, a consulting company at January 1, 2022, contained the following account balances.

Account Title Debit Credit

Cash 30,000

Accounts receivable 15,000

Allowance for doubtful accounts 2,000

Supplies 2,000

Equipment 20,000

Accumulated depreciation 6,000

Unearned revenue 9,000

Karlin, Capital 50,000

Total 67,000 67,000

The following transactions took place during the month of January.

1/1 Karlin provided services to a client for $70,000 and collected cash

1/5 Karlin invested an additional $10,000 of cash in the business

1/10 Paid salaries of $10,000

1/15 Karlin provided services to a client for $30,000 on credit

1/18 Collected a customer accounts receivable of $10,000

1/20 Paid the utility bill of $1,000

1/22 Purchased a building paying $5,000 in cash and signing a notes payable for the $10,000

1/24 Paid rent of $5,000

1/28 Karlin withdrew $2,500

1/30 Purchased $1,500 of Supplies

REQUIRMENTS

Set up the necessary T-accounts and enter the beginning balances from the trial balance

Prepare a general entry for each of the transactions

Post the journal entries to the accounts

Prepare an unadjusted trial balance

Prepare and post the following adjusting journal entries

Accrued salaries at year-end amount to $2,000

Equipment is being depreciated using straight -line. Salvage value is 0 and the useful live is 10 years.

A count of supplies at month end revealed $2,000 of supplies on hand

One half of the unearned revenue had been earned during the month

Karlin uses the % of receivable method to estimate bad debt expense. Karlin estimates that 4% of the year end accounts receivable will not be collected

Prepare an adjusted trial balance

Prepare an income statement, statement of owners equity and balance sheet for January 31, 2022.

Prepare and post closing entries

Prepare a post-closing trial balance

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