Problem 2-6 (Algo) Accounting cycle [LO2-3, 2-4,2-5, 2-6, 2-7, 2-8] The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following a Credits Debits 30,800 14,500 24, eee Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total 7,200 8,250 45,500 8,352 69.303 69. 309 The following is a summary of the transactions for the year: a. Service revenue, $120,000, of which $36,000 was on account and the balance was received in cash. b. Collected on accounts receivable, $24,700. c. Issued shares of common stock In exchange for $12,500 in cash. d. Pald salarles, $43,750 (of which $8,250 was for salaries payable at the end of the prior year). e. Pald miscellaneous expense for various items, $23,600. f. Purchased equipment for $14,500 in cash. g. Pald $2,900 In cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $875. 2. Depreciation for the year on the equipment is $2,400. 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. Complete this question by entering your answers in the tabs below. Req 25 and 8 Reg 3 Reg 4 Reg 6 Req 7A Reg 7B Req9 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.) View transaction list View journal entry worksheet No Transaction General Journal Credit Cash Accounts receivable Sales revenue Debit 84,000 36,000 120,000 24,700 Cash Accounts receivable 24,700 Cash 12.500 Common stock Salaries payable Salaries expense Cash 8.250 35,500 43,750 Miscellaneous expense 23.600 Cash 23,600 Equipment 14,500 Cash 14,500 2.900 Dividends Cash 2.900 Salaries expense Salaries payable 2.400 Depreciation expense Equipment 10 j. No Transaction Recorded 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.) Cash Accounts Receivable 14,500 Beg. bal. 30.800 Beg. bal. 84.500 53.700 End. bal. 14,500 Equipment 24,000 Accumulated Depreciation 7,200 Beg. bal. Beg. bal. End bal. 24,000 End. bal. 7.2001 Salaries Payable 8,250 Common Stock 45,500 Beg. bal. Beg. bal. End, bal. 8.250 End. bal. 45,500 Dividends Retained Earnings 3,350 Beg. bal. Beg. bal. End. bal. 8,350 End. bal. Service Revenue Miscellaneous expense Beg. bal. | Beg. bal. End, bal Depreciation Expense Salaries Expense Beg. bal. Beg. bal. End, bal End, bal Reg 2 5 and 8 Reg 3 Reg 4 Reg 6 Reg 7A Reg 7B Reg 9 Prepare an unadjusted trial balance. Credits KARLIN COMPANY Unadjusted Trial Balance Account Title Debits Cash is 30.800 Accounts receivable 14,5001 Equipment 24,000 Accumulated depreciation Salaries payable Common stock Retained earnings Dividends Service revenue $ 7,200 3,250 45,500 8.350 Salaries expense Miscellaneous expenses Totals $ 69,300 $ 69,300 Req3 Req6 > Reg 2 5 and 8 Sande Regs Req3 Reg 4 Rega Reg 6 Rego Reg 7A Reg za Reg 78 Rea 7a Reg 9 Regis Prepare an adjusted trial balance. Credits KARLIN COMPANY Adjusted Trial Balance Account Title Debits Cash 67.250 Accounts receivable 25,800 Equipment 36,100 Accumulated depreciation Salaries payable Common stock Retained earnings Dividends Service revenue 36.375 Salaries expense 23.600 Miscellaneous expenses 2.900 Depreciation expense 2.400 Totals $ 194,425 875 7,200 58.000 8.350 120.000 $ 194,425 Req 2 5 and 8 Req3 Reg4 Reqb Req 7A Reg 7A Reg 78 Reg 9 Prepare a balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) KARLIN COMPANY Balance Sheet December 31, 2021 Assets Equipment 28.900 67.250 Cash Accounts receivable Total assets 25,800 121,950 121.950 Liabilities and Shareholders' Equity Total liabilities and shareholders' equity Reg 25 and 8 Req3 Rega Reg 6 Rego Rega Reg 78 Reg 9 Prepare a post-closing trial balance. Credits KARLIN COMPANY Post-Closing Trial Balance Account Title Debits Cash is 67,250 Accounts receivable 25,800 Equipment 36,100 Accumulated depreciation s Salaries payable Common stock Retained earnings Service revenue 7,200 875 58.000 63,075 Salaries expense Miscellaneous expenses Depreciation expense Totals $ 129,150 $ 129,150