Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm not sure what goes in the Retained Earnings under the T-account. I'd tried crediting 32000 for the closing entry and it is still wrong.

I'm not sure what goes in the Retained Earnings under the T-account. I'd tried crediting 32000 for the closing entry and it is still wrong. Then I am also not sure what goes in the entry under 2500 debit. The unadjusted trial balance for the salaries payable I put in 0 and was wrong; same when I left it blank. image text in transcribedimage text in transcribedimage text in transcribed

The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Credits Debits 30,000 15,000 20,000 Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total 6,000 9,000 40,500 9,500 65,000 65,000 The following is a summary of the transactions for the year: a. Service revenue, $100,000, of which $30,000 was on account and the balance was received in cash. b. Collected on accounts receivable, $27,300. c. Issued shares of common stock in exchange for $10,000 in cash. d. Paid salaries, $50,000 (of which $9,000 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $24,000. f. Purchased equipment for $15,000 in cash. g. Paid $2,500 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $1,000. 2. Depreciation for the year on the equipment is $2,000. 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 2021. 7-b. Prepare a balance sheet as of December 31, 2021. 9. Prepare a post-closing trial balance. Beg. bal. a. Accounts Receivable 15,000 30,000 27,300 Beg. bal. . a b. Cash 30,000 70,000 50,000 d 27,300 24,000 10,000 15,000 2,500g 45,800 e. End. bal. End. bal. 17,700 Equipment 20,000 15,000 Beg. bal. f. Beg. bal. Accumulated Depreciation 6,000 2,000 Adjusting End. bal. 35,000 End. bal. 8,000 Salaries Payable 9,000 Beg. bal. Beg. bal. d. Common Stock 40,500 10,000 9,000 1,000 Adjusting c. End. bal. 1,000 End. bal. 50,500 Dividends Retained Earnings 9,500 2,500 0 Beg. bal. Closing Beg. bal. Closing 2,500 2,500 Closing End. bal. 7,000 End. bal. Service Revenue Miscellaneous expense Beg. bal. Closing 100,000 100.000 a. Beg. bal. e. 24,000 24,000 Closing End, bal. End. bal. Depreciation Expense Salaries Expense Beg. bal. Beg. bal. Adjusting 2,000 2,000 C losing 42,000 Closing 41,000 1,000 Adjusting End. bal. End. bal. Complete this question by entering your answers in the tabs below. Req 2 5 and 8 Req 3 Req 4 Req 6 Req ZA Req 7B Req 9 Prepare an unadjusted trial balance. KARLIN COMPANY redits Unadjusted Trial Balance Account Title Debits Cash $ 45,800 Accounts receivable 17,700 Equipment 35,000 Accumulated depreciation Salaries payable $ 6,000 Common stock 1,000 50,500 9,500 Retained earnings Dividends 2500 100,000 Service revenue Salaries expense Miscellaneous expenses 41,000 24,000 $ 166,000 Totals $ 167,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

IFRS Edition

978-1118443965, 1118800532, 9781118800539, 978-0470873991

More Books

Students also viewed these Accounting questions

Question

Job type Retail sales, managerial, human resources, etc.

Answered: 1 week ago