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

Account Title:

DebitsCash30,800Accounts receivable14,500Equipment24,000

Credit: Accumulated depreciation7,200Salaries payable8,250Common stock45,500Retained earnings8,350

Total 69,30069,300

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

1. Sales of services, $120,000, of which $36,000 was on credit.
2. Collected on accounts receivable, $24,700.
3. Issued shares of common stock in exchange for $12,500 in cash.
4. Paid salaries, $43,750 (of which $8,250 was for salaries payable).
5. Paid miscellaneous expenses, $23,600.
6. Purchased equipment for $14,500 in cash.
7. Paid $2,900 in cash dividends to shareholders.
8. Accrued salaries at year-end amounted to $875.
9. Depreciation for the year on the equipment is $2,400.

Required:

1. 2., 5, & 8.Prepare the summary, adjusting and closing entries for each of the transactions listed.

Record the adjusting journal entry for accrued salaries and wages at year-end that amounted to $875.

Record the adjusting journal entry for annual depreciation of $2,400.

Record the entry to close the revenue accounts using the income summary.

Record the entry to close the expense accounts using the income summary.

Record the entry to close the income summary account.