The general ledger of the Karlin Company, a consulting company, at January 1, 2013, contained the following account balances:

Account Title	Debits	Credits
Cash	30,000
Accounts receivable	15,000
Equipment	20,000
Accumulated depreciation		6,000
Salaries payable		9,000
Common stock		40,500
Retained earnings		9,500
Total	65,000	65,000

The following is a summary of the transactions for the year:

a.	Sales of services, $100,000, of which $30,000 was on credit.
b.	Collected on accounts receivable, $27,300.
c.	Issued shares of common stock in exchange for $10,000 in cash.
d.	Paid salaries, $50,000 (of which $9,000 was for salaries payable).
e.	Paid miscellaneous expenses, $24,000.
f.	Purchased equipment for $15,000 in cash.
g.	Paid $2,500 in cash dividends to shareholders.

1.	Accrued salaries at year-end amounted to $1,000.
2.	Depreciation for the year on the equipment is $2,000.

*

3.	Prepare the closing entries.*