Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Cash Accounts receivable Equipment

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Cash Accounts receivable Equipment Accumulated depreciation Salarles payable Common stock Retained earnings Total Debits Credits 32,300 12,000 19,000 5,700 7,000 43,000 7,600 63,300 63,300 The following is a summary of the transactions for the year 2. Service revenue, $110,000, of which $33,000 was on account and the balance was received in cash. b. Collected on accounts receivable $23,200. c Issued shares of common stock in exchange for $9,500 in cash d. Pald salaries, $40,000 (of which $7,000 was for salaries payable at the end of the prior year). e. Pald miscellaneous expense for various items $21,600 f. Purchased equipment for $12,000 in cash. 9. Pald $2,625 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $800. 2. Depreciation for the year on the equipment is $1,900. 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 No Transaction Debit Credit General Joumal b. Cash 23,200 2 5 e. 21,600 Miscellaneous expense Cash 8 h 800 Salaries expense Salaries payable Req3 > Journal entry worksheet Collected on accounts receivable, $23,200. Note: Enter debits before credits Transaction b General Journal Debit Credit Cash 23,200 Record entry Clear entry View general Journal Journal entry worksheet Paid miscellaneous expenses, $21,600. Note: Enter debits before credits. Transaction General Journal Miscellaneous expense Debit Credit 21,600 Cash Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 00 12 > Record the adjusting journal entry for accrued salaries at year-end that amounted to $800. Note: Enter debits before credits. Transaction h. Debit Credit General Journal Salaries expense (Salaries payable 800 Record entry Clear entry View general Journal Accounts Receivable 12,000 Beg, bal a Beg. bal. Cash 32,300 77,000 23,200 9,500 lo 40,000 21,600(0. 12,000 2,625 19 End, bal 65,775 End. bal 12,000 + Equipment 19,000 12,000 Accumulated Depreciation 5,700 Beg. bal Beg bat End, bal 31,000 End, bat 5,700 Beg bal d Salarios Payable 7,000 7,000 800 (Adjusting Common Stock 43,000 Beg bal End, bal 800 End bal 43,000 Dividends Bebol Retained Earnings 7,600 2.625 52,700 Bogbal (End bal 57.675 End bal 1 of 2 Next > Dividends Beg bal Retained Earnings 7,600 2,625 52,700 Beg bal C End, bal 57,675 + End. bal Service Revenue Miscellaneous expense Beg, bal 0 Beg bal End, bal End, bal Depreciation Expense 0 Salaries Expense Beg, bal Beg bal Endbal End bal Reg 26 and a Rey > Pre 1612 Next > IN % 9. Prepare a post-closing trial balance Complete this question by entering your answers in the tabs below. Req 25 and 8 Reg 3 Reg 4 Reg 6 Req 7A Reg 78 Reg 9 Prepare an unadjusted trial balance. KARLIN COMPANY Unndjusted Trial Balance Account Title Debits Credits Cash $ 65.775 Accounts receivable 21,800 Equipment 31,000 Accumulated depreciation $ 5,700 Salarios payable 0 Common stock 52,500 Retained earnings 7,600 Dividends 2,625 Service revenue 110,000 Salaries expense 33.000 Miscellaneous expenses 21,600 Totals $ 121,200 $ 230.400 Mega Nego > b. Prepare a balance sheet as of December 31, 2021. Prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Reg 2 5 and 8 Reg 3 Reg 4 Req6 Req 7A Reg 78 Reg 9 Prepare an adjusted trial balance. KARLIN COMPANY Adjusted Trial Balance Account Title Debits Credits Cash $ 65,775 Accounts receivable 21,800 Equipment 31,000 Accumulated depreciation 7,600 Salaries payable 800 Common stock 52.500 Retained earings 7.600 Dividends Service revenue Salaries expense 33,800 Miscellaneous expenses 21.600 Depreciation expense 1,900 Totals $ 175.8755 68,500 7-b. Prepare a balance sheet as of December 31, 2021. 9. Prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Req 25 and 8 Reg 3 Req 4 Reg 6 Req 7A Reg 78 Reg 9 Prepare an income statement for 2021. KARLIN COMPANY Income Statement For the Year Ended December 31, 2021 0 $ 0 Prepare a balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) KARLIN COMPANY Balance Sheet December 31, 2021 Assets 0 Liabilities and Shareholders' Equity 0 0 $ 0 Beg 7A Reg > Prepare a post-closing trial balance. Credits KARLIN COMPANY Post-Closing Trial Balance Account Title Debits Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Service revenue Salaries expense Miscellaneous expenses Depreciation expense Totals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect For Financial Accounting

Authors: Author

6th Edition

1264140304, 9781264140305

More Books

Students also viewed these Accounting questions