The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Debits Credits Cash 32,600 Accounts receivable 11,500 Equipment 18,000 Accumulated depreciation 5,400 Salaries payable 6,750 Common stock 42,500 Retained earnings 7,450 Total 62,100 62,100 The following is a summary of the transactions for the year: Service revenue, $108,000, of which $32,400 was on account and the balance was received in cash. Collected on accounts receivable, $22,900. Issued shares of common stock in exchange for $9,000 in cash. Paid salaries, $39,250 (of which $6,750 was for salaries payable at the end of the prior year). Paid miscellaneous expense for various items, $21,200. Purchased equipment for $11,500 in cash. Paid $2,575 in cash dividends to shareholders. Accrued salaries at year-end amounted to $785. Depreciation for the year on the equipment is $1,800. 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 2021. 7-b. Prepare a balance sheet as of December 31, 2021. 9. Prepare a post-closing trial balance.