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 account balances: Credits Debits 32,900 11,000 17,000 Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total 5,100 6,500 42,000 7,300 60,900 60,900 The following is a summary of the transactions for the year: a. Service revenue, $106,000, of which $31,800 was on account and the balance was received in cash. b. Collected on accounts receivable, $22,600. c. Issued shares of common stock in exchange for $8,500 in cash. d. Paid salaries, $38,500 (of which $6,500 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $20,800. f. Purchased equipment for $11,000 in cash. g. Paid $2,525 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $770. 2. Depreciation for the year on the equipment is $1,700 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 2 5 and 8 Req3 Reg4 Rego Req ZA Req 7B Reg9 Complete this question by entering your answers in the tabs below. Req 2 5 and 8 Req3 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 Journal entry worksheet 2 3 4 5 6 7 8 ..... 12 Sales of services, $106,000, of which $31,800 was on credit. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal View transaction list 1 Sales of services, $106,000, of which $31,800 was on credit. 2 Collected on accounts receivable, $22,600. 3 Issued shares of common stock in exchange for $8,500 in cash. 4 Paid salaries, $38,500 (of which $6,500 was for salaries payable) 5 Paid miscellaneous expenses, $20,800. 6 Purchased equipment for $11,000 in cash. Note : = journal entry has been entered View transaction list 7 Paid $2,525 in cash dividends to shareholders. 8 Record the adjusting journal entry for accrued salaries at year-end that amounted to $770. 9 Record the adjusting journal entry for annual depreciation of $1,700. 10 Record the entry to close the revenue accounts using the retained earnings account. 11 Record the entry to close the expense accounts using the retained earnings account. 12 Record the entry to close the dividends account. Note : = journal entry has been entered Req 2 5 and 8 Req3 Reg 4 Reg 6 Reg 7A Req 7B Reg 9 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 32,900 Accounts Receivable 11,000 Beg. bal. Beg. bal. End. bal. 32,900 End. bal. 11,000 Equipment 17,000 Accumulated Depreciation 5,100 Beg. bal. Beg. bal. End. bal. 17,000 End. bal. 5,100 Salaries Payable 6,500 Common Stock 42,000 Beg. bal. Beg. bal. End. bal. 6.500 End. bal. 42.000 Dividends Retained Earnings 7,300 Beg. bal. Beg. bal. End. bal. End. bal. Salaries Payable 6,500 Common Stock 42,000 Beg. bal. Beg. bal. End. bal. 6,500 End. bal. 42,000 Dividends Retained Earnings 7,300 Beg. bal. Beg. bal. End. bal. 7,300 End. bal. Service Revenue Miscellaneous expense Beg. bal. Beg. bal. End. bal. End. bal. Depreciation Expense Salaries Expense Beg. bal. Beg. bal. End. bal. End. bal. Complete this question by entering your answers in the tabs below. 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 Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Dividends Service revenue Salaries expense Miscellaneous expenses Totals $ 0 $ Complete this question by entering your answers in the tabs below. Reg 2 5 and 8 Req3 Reg 4 Reg 6 Reg 7A Req 7B Reg 9 Prepare an adjusted trial balance. Credits KARLIN COMPANY Adjusted Trial Balance Account Title Debits Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Dividends Service revenue Salaries expense Miscellaneous expenses Depreciation expense Totals 0 $ Complete this question by entering your answers in the tabs below. Req 2 5 and 8 Reg 3 Reg 4 Reg 6 Reg 7A Req 7B Reg 9 Prepare an income statement for 2021. KARLIN COMPANY DUIN COMPANY Income Statement For the Year Ended December 31, 2021