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The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances: Account Title Debits Credits Cash 30,000

The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances:

Account TitleDebitsCredits
Cash30,000
Accounts receivable15,000
Equipment20,000
Accumulated depreciation6,000
Salaries payable9,000
Common stock40,500
Retained earnings9,500
Total65,00065,000


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

Sales of services, $100,000, of which $30,000 was on credit.

Collected on accounts receivable, $27,300.

Issued shares of common stock in exchange for $10,000 in cash.

Paid salaries, $50,000 (of which $9,000 was for salaries payable).

Paid miscellaneous expenses, $24,000.

Purchased equipment for $15,000 in cash.

Paid $2,500 in cash dividends to shareholders.

Accrued salaries at year-end amounted to $1,000.

Depreciation for the year on the equipment is $2,000.


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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