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 Salaries payable Common stock Retained earnings Total Debits Credits 33,500 10,000 15,000 4,500 6,000 41,000 7,000 58,500 58,500 The following is a summary of the transactions for the year: a. Service revenue, $102,000, of which $30,600 was on account and the balance was received in cash. b. Collected on accounts receivable, $22,000. c. Issued shares of common stock in exchange for $7,500 in cash. d. Paid salaries, $37,000 (of which $6,000 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $20,000 f. Purchased equipment for $10,000 in cash. g. Paid $2,425 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $740. 2. Depreciation for the year on the equipment is $1,500. 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. No Transaction General Journal Credit a.. Cash Accounts receivable Service revenue Debit 71,400 30,600 102,000 b. 22,000 Cash Accounts receivable 22,000 3 C. 7,500 Cash Common stock 7,500 4 d. Salaries expense Salaries payable Cash 31,000 6,000 37,000 5e. 20,000 Miscellaneous expense Cash 20,000 10,000 Equipment Cash 10,000 Dividends 2,425 Cash 2,425 Salaries expense 740 Equipment 10,000 Cash 10,000 2,425 Dividends Cash 2,425 740 Salaries expense Salaries payable 740 9 i . 1,500 Depreciation expense Accumulated depreciation 1,500 10 j. 102,000 Service revenue Retained earnings 102,000 11 k. 53,240 Retained earnings Salaries expense Miscellaneous expense Depreciation expense 31,740 20,000 1,500 12 . 2,425 Retained earnings Dividends 2,425 Beg. bal. Beg. bal. Cash 33,500 71,400 22,000 7,500 Accounts Receivable 10,000 30,600 22,000 b. a. I 37,000 d. 20,000 e. 10,000 f. 2,425 g. End. bal. 64,975 End. bal. L 18,600 Beg. bal. Equipment 15,000 10,000 Beg. bal. Accumulated Depreciation 4,500 1,500 Adjusting End. bal. 25,000 End. bal. 6,000 Salaries Payable Beg. bal. 6,000 Beg. bal. Common Stock 41,000 7,500 C. 6,000 740 Adjusting End. bal. 740 End. bal. 48,500 Dividends Beg. bal. Beg. bal. g. Closing Retained Earnings 7,000 2,425 102,000 Closing 53,240 End. bal. 53,335 End. bal. Service Revenue Miscellaneous expense Beg. bal. Beg. bal. Closing | 102,000 102,000 a. 20,000 20,000 Closing End. bal. End. bal. Depreciation Expense Salaries Expense Beg. bal. Beg. bal. Adjusting 1,500 1,500 Closing 31,740 Closing I I 31,000 740 Adjusting End. bal. End. bal. KARLIN COMPANY Credits Unadjusted Trial Balance Account Title Debits Cash | $ 64,975 Accounts receivable 18,600 Equipment 25,000 Accumulated depreciation Salaries payable Common stock Retained earnings $ 4,500 48,500 4,575 Dividends Service revenue 102,000 Salaries expense 31,000 Miscellaneous expenses 20,000 159,575 Totals | $ $ 159,575 Credits KARLIN COMPANY Adjusted Trial Balance Account Title Debits Cash $ 64,975 Accounts receivable 18,600 Equipment 25,000 Accumulated depreciation Salaries payable Common stock Retained earnings 6,000 740 48,500 4,575 Dividends Service revenue 102,000 Salaries expense Miscellaneous expenses Depreciation expense 31,740 20,000 1,500 161,815 Totals | $ $ 161,815 102,000 KARLIN COMPANY Income Statement For the Year Ended December 31, 2021 Service revenue [ $ Operating expenses Salaries expense 31,740 Miscellaneous expense 20,000 Depreciation expense 1,500 53,240 Total operating expenses Net income 48,760