Question
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances: Account Title Debits Credits Cash 30,200
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances: Account Title Debits Credits Cash 30,200 Accounts receivable 15,500 Equipment 26,000 Accumulated depreciation 7,800 Salaries payable 8,750 Common stock 46,500 Retained earnings 8,650 Total 71,700 71,700 The following is a summary of the transactions for the year: Sales of services, $124,000, of which $37,200 was on credit. Collected on accounts receivable, $25,300. Issued shares of common stock in exchange for $13,500 in cash. Paid salaries, $45,250 (of which $8,750 was for salaries payable). Paid miscellaneous expenses, $24,400. Purchased equipment for $16,000 in cash. Paid $3,000 in cash dividends to shareholders. Accrued salaries at year-end amounted to $905. Depreciation for the year on the equipment is $2,600. 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.
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