The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Credits Debits 30,000 15,000 20,000 Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total 6,000 9,000 40,500 9,500 65,000 65.000 The following is a summary of the transactions for the year. a. Service revenue, $100,000, of which $30,000 was on account and the balance was received in cash. 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 at the end of the prior year). e. Paid miscellaneous expense for various items, $24,000. f. Purchased equipment for $15,000 in cash. g. Paid $2,500 in cash dividends to shareholders. 1. Set up the necessary T-accounts and enter the beginning balances from the trial balance, 2. Prepare a general journal entry for each of the summary transactions listed above. 3. Post the journal entries to the accounts. 4. Prepare an unadjusted trial balance. 5. Prepare and post adjusting journal entries. Accrued salaries at year-end amounted to $1,000. Depreciation for the year on the equipment is $2,000. 6. Prepare an adjusted trial balance. 7. Prepare an income statement for 2021 and a balance sheet as of December 31, 2021. Requirement 2 a. Cash ....... Accounts receivable Service revenue ... b. Cash ............. Accounts receivable ..... c. Cash.... Common stock.... d. Salaries expense Salaries payable Cash. e. Miscellaneous expense.. Cash... f. Equipment ......... Cash ........... g. Dividends .......... Cash.... Requirement 6 Debits Credits Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Dividends Service revenue Salaries expense Miscellaneous expense Depreciation expense Totals Requirement 7 KARLIN COMPANY Income Statement For the Year Ended December 31, 2021 Service revenue ...... Operating expenses: Salaries expense.... Miscellaneous expense Depreciation expense .... Total operating expenses.. Net income ....... . PROBLEM-1 KARLIN COMPANY Balance Sheet At December 31, 2021 Assets Current assets: Cash Accounts receivable .......... Total current assets Property and equipment: Equipment .. Less: Accumulated depreciation....... Total assets ...... Liabilities and Shareholders' Equity Current liabilities: Salaries payable Total current liabilities Shareholders' equity: Common stock Retained earnings ....... Total shareholders' equity .. ... Total liabilities and shareholders' equity fuga PROBLEM-1