SEVEN(17 marks) The general ledger of Karpet Kleaners at January 1,2010, includes the following account balances: Account title Debits Credits Cash $15000 Account receivable 7000 Office supplies 3000 Equipment 10000 Accumulate depreciation $3000 Salaries payable 5000 Common stock 20000 Retained earning 7000 Totals 35000 35000 The following is a summary of the transactions for the year: a. sales of services, $50000, of which $20000 is on account. b. collect on accounts receivable, $17000. c. Issue shares of common stock in exchange for $5000 cash. d. Pay salaries, $25000( of which $5000 is for salaries payable in 2009). e. Pay miscellaneous expense,$12000. f. Purchase equipment for $7000 cash g. Pay $1000 cash dividends to stockholders. Required: 1. Set up the necessary T-accounts and enter the beginning balances from the trial balance. In addition to the accounts shown, the company also has accounts for service revenue, dividends, salaries expense, miscellaneous expense, depreciation expense, and office supplies expense. 2. Record each of the summary transactions listed above. 3. Post transactions to the accounts. 4. Prepare an unadjusted trial balance. 5. Record adjusting entries. Accrued salaries at year-end amounted to $1000. Depreciation for the year on the equipment is $4000. Office supplies remaining on hand at the end of the year equal $1000. 6. Post adjusting entries. 7. Prepare an adjusted trial balance. 8. Prepare an income statement for 2010 and a classified balance sheet as of December 31, 2010