The general ledger of karlin company, a consulting company, at January 1, 2018, contained the following account balances:
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balance Credits Debits 29,309 17.000 29,000 Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total 8,700 9.500 48.000 9.100 75,300 75,300 The following is a summary of the transactions for the year. a. Sales of services, $130,000, of which $39,000 was on credit. b. Collected on accounts receivable, $26,200 c. Issued shares of common stock in exchange for $15,000 in cash d. Paid salaries, $47,500 (of which $9,500 was for salaries payable). e. Paid miscellaneous expenses. $25,600 f. Purchased equipment for $17,500 in cash. g. Paid $3,150 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $950. 2. Depreciation for the year on the equipment is $2,900. a. Sales of services, $130,000, of which $39,000 was on credit b. Collected on accounts receivable, $26,200 c. Issued shares of common stock in exchange for $15,000 in cash. d. Paid salaries, $47,500 (of which $9,500 was for salaries payable). e. Paid miscellaneous expenses, $25,600. f. Purchased equipment for $17,500 in cash. g. Paid $3,150 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $950. 2. Depreciation for the year on the equipment is $2,900. 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 2018. 7-b. Prepare a balance sheet as of December 31, 2018 9. Prepare a post-closing trial balance. 1 Sales of services, $130,000, of which $39,000 was on credit. 2 Collected on accounts receivable, $26,200. 3 Issued shares of common stock in exchange for $15,000 in cash. 4 Paid salaries and wages, $47,500 (of which $9,500 was for salaries payable). 5 Paid miscellaneous expenses, $25,600. 6 Purchased equipment for $17,500 in cash. Accounts Receivable 17,000 Beg. bal. 29,300 Beg. bal. End, bal. 29,300 End, bal. 17,000 Equipment 29,000 Accumulated Depreciation 8,700 Beg. bal. Beg bal. Endbal 29,000 End, bal. 8,700 Salaries Payable 9,500 Common Stock 48,000 Beg bal. Beg bal. End, bal d. bal. 9.500 End. bal. 48.000 Beg. bal. Retained Earnings 9,100 Beg. bal Service Revenue o End, bal. 9,100 End. bal. TTT Miscellaneous Expenses Beg bal. Depreciation Expense 0 Beg, bal DDDDDD End. bal Salaries Expense Income Summary 1 Beg. bal. III End bal. D End bal Credits KARLIN COMPANY Unadjusted Trial Balance Account Title Debits Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Service revenue Salaries expense Miscellaneous expenses Totals Credits KARLIN COMPANY Adjusted Trial Balance Account Title Debits Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Service revenue Salaries expense Miscellaneous expenses Depreciation expense Totals $ 0 $ 0 KARLIN COMPANY Income Statement For the Year Ended December 31, 2018 KARLIN COMPANY Balance Sheet December 31, 2018 I 1 1 III KARLIN COMPANY Post-Closing Trial Balance Account Title Debits Credits Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Service revenue Salaries expense Miscellaneous expenses Depreciation expense Totals 0 $
