The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:

Account Title	Debits		Credits
Cash	30,500
Accounts receivable	15,000
Equipment	25,000
Accumulated depreciation			7,500
Salaries payable			8,500
Common stock			46,000
Retained earnings			8,500
Total	70,500		70,500

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

1. Service revenue, $122,000, of which $36,600 was on account and the balance was received in cash.
2. Collected on accounts receivable, $25,000.
3. Issued shares of common stock in exchange for $13,000 in cash.
4. Paid salaries, $44,500 (of which $8,500 was for salaries payable at the end of the prior year).
5. Paid miscellaneous expense for various items, $24,000.
6. Purchased equipment for $15,500 in cash.
7. Paid $2,950 in cash dividends to shareholders.

1. Accrued salaries at year-end amounted to $890.
2. Depreciation for the year on the equipment is $2,500.

Required: 3. Post the transactions, adjusting and closing entries into the appropriate t-accounts. 7-a. Prepare an income statement for 2021. 7-b. Prepare a balance sheet as of December 31, 2021. ONLY 3, 7a, and 7b

• Accounts payable
• Accounts receivable
• Accumulated depreciation
• Advertising expense
• Allowance for uncollectible accounts
• Buildings
• Cash
• Common stock
• Cost of goods sold
• Deferred rent revenue
• Deferred sales revenue
• Deferred service revenue
• Depreciation expense
• Dividends
• Equipment
• Gain on sale of investment
• Insurance expense
• Interest expense
• Interest payable
• Interest receivable
• Interest revenue
• Inventory
• Land
• Maintenance expense
• Miscellaneous expense
• Note payable
• Note receivable
• Office Equipment
• Prepaid advertising
• Prepaid insurance
• Prepaid rent
• Rent expense
• Rent revenue
• Retained earnings
• Salaries expense
• Salaries payable
• Sales revenue
• Service revenue
• Supplies
• Supplies expense
• Utilities expense
• Utilities payable
• Current assets
• Current liabilities
• Non-current liabilities
• Property and equipment
• Shareholders' equity
• Total assets
• Total assets and liabilities
• Total assets and shareholders' equity
• Total current assets
• Total current liabilities
• Total liabilities and shareholders' equity
• Total non-current liabilities
• Total shareholders' equity

• Accounts payable
• Accounts receivable
• Accumulated depreciation
• Advertising expense
• Allowance for uncollectible accounts
• Buildings
• Cash
• Common stock
• Cost of goods sold
• Deferred rent revenue
• Deferred sales revenue
• Deferred service revenue
• Depreciation expense
• Dividends
• Equipment
• Gain on sale of investment
• Insurance expense
• Interest expense
• Interest payable
• Interest receivable
• Interest revenue
• Inventory
• Land
• Maintenance expense
• Miscellaneous expense
• Note payable
• Note receivable
• Office Equipment
• Prepaid advertising
• Prepaid insurance
• Prepaid rent
• Rent expense
• Rent revenue
• Retained earnings
• Salaries expense
• Salaries payable
• Sales revenue
• Service revenue
• Supplies
• Supplies expense
• Utilities expense
• Utilities payable

• 

Req 25 and 8 Req3 Reg 4 Req 6 Req 7A Req 7B Reg 9 Prepare the summary, adjusting and closing entries for each of the transactions listed. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet X No Transaction General Journal Debit Credit 1 a.. Cash 85,400 Accounts receivable 36,600 Service revenue 122,000 2 b. Cash 25,000 Accounts receivable 25,000 3 C. Cash 13,000 Common stock 13,000 4 d. Salaries expense Salaries payable Cash 36,000 8,500 44,500 5 e. Miscellaneous expense 24,000 Cash 24,000 5 e. Miscellaneous expense 24,000 Cash 24,000 6 f. Equipment 15,500 Cash 15,500 7 g. Retained earnings 2,950 Cash 2,950 8 h. 890 Salaries expense Salaries payable 890 9 i. 2,500 Depreciation expense Accumulated depreciation 2,500 10 j. No journal entry required 11 k. No journal entry required 12 I. No journal entry required Req 25 and 8 Reg 3 Reg 4 Reg 6 Req 7A Req 7B Req 9 Post the transactions, adjusting and closing entries into the appropriate t-accounts. (Enter the letter of the transaction in the column next to the amount.) Cash 30,500 Accounts Receivable 15,000 Beg. bal. Beg. bal. End. bal. 30,500 End. bal. 15,000 Equipment 25,000 Accumulated Depreciation 7,500 Beg. bal. Beg. bal. End. bal. 25,000 End. bal. 7,500 Common Stock Salaries Payable 8,500 Beg. bal. Beg. bal. 46,000 End. bal. 8,500 End. bal. 46,000 Dividends Retained Earnings 8,500 Beg. bal. Beg, bal. 0 End, bal. 8,500 End. bal. Miscellaneous expense Service Revenue 0 Beg. bal. Beg. bal. 0 End. bal. End. bal. Depreciation Expense Salaries Expense Beg. bal. 0 Beg. bal. End. bal. End. bal. Complete this question by entering your answers in the tabs below. Req 25 and 8 Req 3 Req 4 Req 6 Req za Req ZB Reg 9 Prepare an unadjusted trial balance. KARLIN COMPANY Unadjusted Trial Balance Account Title Debits Credits Cash $ 66,950 26,600 40,500 Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock $ 7,500 0 59,000 5,550 Retained earnings Dividends 0 Service revenue 122,000 36,000 Salaries expense Miscellaneous expenses 24,000 194,050 Totals $ 194,050 Complete this question by entering your answers in the tabs below. Req 25 and 8 Req3 Reg 4 Req6 Req 7A Req 7B Reg 9 Prepare an adjusted trial balance. KARLIN COMPANY Adjusted Trial Balance Account Title Debits Credits Cash $ 66,950 Accounts receivable 26,600 Equipment 40.500 Accumulated depreciation 10,000 Salaries payable 890 Common stock 59,000 Retained earnings 5,550 Dividends 0 Service revenue 122,000 Salaries expense 36,890 Miscellaneous expenses 24,000 Depreciation expense 2,500 Totals $ 197,440 $ 197,440 Complete this question by entering your answers in the tabs below. Req 2 5 and 8 Req 3 Req 4 Req 6 Req ZA Req 7B Req 9 Prepare an income statement for 2021. KARLIN COMPANY Income Statement For the Year Ended December 31, 2021 Accounts payable Accounts receivable Accumulated depreciation Advertising expense 0 $ 0 Req 6 Req ZB > KARLIN COMPANY Balance Sheet December 31, 2021 Assets Current assets 0 Current liabilities Non-current liabilities Property and equipment 0 Liabilities and Shareholders' Equity 0 0 0 KARLIN COMPANY Balance Sheet December 31, 2021 Assets 0 Accounts payable 0 Accou receivable ars' Equity Accumulated depreciation Advertising expense 0 0 $ 0 Complete this question by entering your answers in the tabs below. Req 2 5 and 8 Reg 3 Req 4 Req 6 Req 7A Req 7B Req 9 Prepare a post-closing trial balance. KARLIN COMPANY Post-Closing Trial Balance Account Title Debits Credits Cash $ Accounts receivable 66,950 26,600 40,500 Equipment Accumulated depreciation Salaries payable $ 10,000 890 Common stock 59,000 64,160 Retained earnings Service revenue Salaries expense Miscellaneous expenses Depreciation expense Totals $ 134,050 $ 134,050