Return to The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Debits Credits Cash 29,900 16,000 Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock 27,000 8,100 9,000 47,000 8,800 Retained earnings 72,900 Total 72,900 The following is a summary of the transactions for the year: a. Service revenue, $126,000, of which $37,800 was on account and the balance was received in cash b. Collected on accounts receivable, $25,600. c. Issued shares of common stock in exchange for $14,000 in cash. d. Paid salaries, $46,000 (of which $9,000 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $24,800 f. Purchased equipment for $16,500 in cash. g. Paid $3,050 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $920. 2. Depreciation for the year on the equipment is $2,700. 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. No Transaction General Journal Debit Credit 1 Cash 88,200 .. Accounts receivable 37,800 Service revenue 126,000 Cash 25,600 2 b. Accounts receivable 25,600 Cash 14,000 . Common stock 14,000 Salaries expense 37,000 4 d. Salaries payable 9,000 46,000 Cash Miscellaneous expense 24,800 . Cash 24,800 Equipment 6 16,500 Cash 16,500 Dividends 7 3,050 g. Cash 3,050 Salaries expense 8 920 Salaries payable 920 Depreciation expense 2,700 Accumulated depreciation 2,700 LO CO Service revenue 10 126,000 Retained earnings 126,000 Retained earnings 11 k. 65,420 Salaries expense 37,920 Miscellaneous expense 24,800 Depreciation expense 2,700 Retained earnings 47,000 12 Dividends 47,000 Cash Accounts Receivable 29,900 Beg. bal 16,000 Beg. bal 88,200 46,000 37,800 25,600 b. . . b. 25,600 24,800 . 14,000 f. 16,500 C. 3,050 g. End. bal End. bal 28,200 67,350 Accumulated Depreciation Equipment Beg. bal f. Beg. bal 27,000 8,100 Adjusting 16,500 2,700 End. bal. 43,500 End. bal. 10,800 Salaries Payable Common Stock Beg. bal Beg. bal 9,000 47,000 Adjusting 9,000 920 14,000 . End. bal. End. bal. 920 61,000 Retained Earnings Dividends Beg. bal Beg. bal 8,800 0 Closing b. 3,050 Closing End bal End. bal. 5,750 Miscellaneous expense Service Revenue Beg. bal Beg. bal 0 126,000 126,000 Closing Closing 24,800 24,800 . . End bal. End. bal Salaries Expense Depreciation Expense Beg. bal Adjusting Beg. bal 0 Closing 37,000 37,920 2,700 2,700 d. Closing Adjusting 920 End. bal End. bal. Prepare an unadjusted trial balance. KARLIN COMPANY Unadjusted Trial Balance Debits Account Title Credits $ 67,350 Cash Accounts receivable 28,200 Equipment 43,500 Accumulated depreciation 8,100 Salaries payable 0 Common stock 61,000 Retained earnings 5,750 0 x) Dividends Service revenue 126,000 Salaries expense 37,000 Miscellaneous expenses 24,800 $ 200,850 $ 200,850 Totals Prepare an adjusted trial balance. KARLIN COMPANY Adjusted Trial Balance Account Title Debits Credits Cash 67,350 Accounts receivable 28,200 Equipment 43,500 Accumulated depreciation 10,800 Salaries payable 920 Common stock 61,000 Retained earnings 3,050 Dividends 5,750 126,000 Service revenue Salaries expense 37,920 Miscellaneous expenses 24,800 Depreciation expense 2,700 $ 204,470 Totals 207,520 Prepare an income statement for 2021. KARLIN COMPANY Income Statement For the Year Ended December 31, 2021 Service revenue Operating expenses $ 126,000 Salaries expense 37,920 Miscellaneous expense 24,800 Depreciation expense 2,700 Total operating expenses Net income 65,420 60,580 Prepare a balance sheet as of December 31, 2021. (Amounts to be deducted sho KARLIN COMPANY Balance Sheet December 31, 2021 Assets Current assets $ Cash 67,350 Accounts receivable 28,200 95,550 Total current assets Property and equipment $ Equipment 43,500 Accumulated depreciation (10,800) 128,250 Total assets Liabilities and Shareholders' Equity Current liabilities Salaries payable 920 Total current liabilities 920 Shareholders' equity Common stock 61,000 Retained earnings 53 Total shareholders' equity 61,005 Total liabilities and shareholders' equity 61,925 Prepare a post-closing trial balance. KARLIN COMPANY Post-Closing Trial Balance Account Title Debits Credits $ 67,350 Cash Accounts receivable 28,200 Equipment 43,500 S 10,800 Accumulated depreciation Salaries payable 920 Common stock 61,000 Retained earnings 0 X 126,000 Service revenue Salaries expense 37,000 Miscellaneous expenses 24,800 Depreciation expense 2,700 $198,720 203,550 Totals Reg 7B