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The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Debits Credits Cash 28,700
The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:
Account Title | Debits | Credits | ||
Cash | 28,700 | |||
Accounts receivable | 18,000 | |||
Equipment | 31,000 | |||
Accumulated depreciation | 9,300 | |||
Salaries payable | 10,000 | |||
Common stock | 49,000 | |||
Retained earnings | 9,400 | |||
Total | 77,700 | 77,700 | ||
The following is a summary of the transactions for the year:
- Service revenue, $134,000, of which $40,200 was on account and the balance was received in cash.
- Collected on accounts receivable, $26,800.
- Issued shares of common stock in exchange for $16,000 in cash.
- Paid salaries, $49,000 (of which $10,000 was for salaries payable at the end of the prior year).
- Paid miscellaneous expense for various items, $26,400.
- Purchased equipment for $18,500 in cash.
- Paid $3,250 in cash dividends to shareholders.
- Accrued salaries at year-end amounted to $980.
- Depreciation for the year on the equipment is $3,100.
Required: Prepare a post-closing trial balance.
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