The general ledger of Karlin Company, a consulting company at January 1, 2022, contained

Account Title

Cash Accounts receivable Allowance for doubtful accounts Supplies Equipment Accumulated depreciation Unearned revenue Karlin, Capital Total

Debit

30,000 15,000

2,000 20,000

67,000

Credit

2,000

6,000

9,000 50,000 67,000

The following transactions took place during the month of January. 1/1 Karlin provided services to a client for $70,000 and collected cash 1/5 Karlin invested an additional $10,000 of cash in the business 1/10 Paid salaries of $10,000 1/15 Karlin provided services to a client for $30,000 on credit 1/18 Collected a customer accounts receivable of $10,000 1/20 Paid the utility bill of $1,000 1/22 Purchased a building paying $5,000 in cash and signing a notes payable for the $10,000 1/24 Paid rent of $5,000 1/28 Karlin withdrew $2,500 1/30 Purchased $1,500 of Supplies

REQUIRMENTS

Set up the necessary T-accounts and enter the beginning balances from the trial balance

Prepare a general entry for each of the transactions

Post the journal entries to the accounts

Prepare an unadjusted trial balance

Prepare and post the following adjusting journal entries

Accrued salaries at year-end amount to $2,000

Equipment is being depreciated using straight -line. Salvage value is $2,000 and the useful live is 60 months.

A count of supplies at month end revealed $2,000 of supplies on hand

One half of the unearned revenue had been earned during the month

Karlin uses the % of receivable method to estimate bad debt expense. Karlin estimates that 4% of the year end accounts receivable will not be collected

Prepare and adjusted trial balance

Prepare an income statement, statement of owners equity and balance sheet for January 31, 2022.

8. Prepare and post closing entries 9. Prepare a post-closing trial balance