The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Credits Debits 32,000 12,500 20,000 Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total 6,000 7,250 43,500 7,750 64,500 64,500 The following is a summary of the transactions for the year: a. Service revenue, $112,000, of which $33,600 was on account and the balance was received in cash. b. Collected on accounts receivable, $23,500. c. Issued shares of common stock in exchange for $10,500 in cash. d. Paid salaries, $40,750 (of which $7,250 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $22,000. f. Purchased equipment for $12,500 in cash. g. Paid $2,700 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $815. 2. Depreciation for the year on the equipment is $2,000. 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. Dranard et locisteilbolan KARLIN COMPANY Post-Closing Trial Balance Account Title Debits Credits Cash Accounts receivable $ 63,150 X 28,100 X 43,500 X Equipment Accumulated depreciation Salaries payable $ 11,300 Common stock 3,565 59,500 X 60,385 X Retained earnings Service revenue Salaries expense Miscellaneous expenses Depreciation expense Totals $ 134,750 $ 134,750 Balance Sheet December 31, 2021 Assets Current assets Cash $ 63,150 28,100 Accounts receivable 91,250 $ Property and equipment Equipment Accumulated depreciation Supplies Total assets Liabilities and Shareholders' Equity 43,500 (11,300) 32,200 X 155,650 Current liabilities $ 3,565 3,565 Salaries payable Total current liabilities Shareholders' equity Common stock Retained earnings $ 59,500 X 60,385 X 119,885 123.450 1$ KARLIN COMPANY Adjusted Trial Balance Account Title Debits Credits Cash $ 63,150 X 28,100 X 43,500 X Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings 11,300 3,565 X 59,500 X 9,400 X Dividends 2,700 Service revenue 112,000 Salaries expense 34,315 Miscellaneous expenses Depreciation expense 22,000 2,000 195,765 Totals $ $ 195,765 $ KARLIN COMPANY Unadjusted Trial Balance Account Title Debits Credits Cash $ 78,400 X Accounts receivable 28,100 X Equipment 43,500 X Accumulated depreciation 9,300 X Salaries payable 2,750 X Common stock 59,500 X Retained earnings 9,400 X Dividends 2,700 Service revenue 112,000 Salaries expense 33,500 Miscellaneous expenses 2,200 X Totals $ 188,400 $ 192,950 Dividends Beg. bal. 0 Beg. bal. Closing Closing Retained Earnings 7,750 58,315 112,000 52,685 Closing g. 2,700 2,700 Closing End. bal. 8,750 End. bal. Service Revenue Miscellaneous expense 0 Beg. bal. 0 Beg. bal. Adjusting 112,000 112,000 a. e. 22,000 22,000 e. End. bal. End. bal. Depreciation Expense Salaries Expense Beg. bal. 0 Beg. bal. a. 2,000 2,000 Adjusting d. 33,500 34,315 e. Adjusting 815 End. bal. End. bal. Cash Beg. bal. Beg. bal. a. Accounts Receivable 12,500 33,600 23,500 b. 28,100 X Adjusting X d. a. 32,000 78,400 23,500 10,500 40,750 22,000 b. e. OOOO C. 12,500 f. 2,700 g. End. bal. 66,450 End. bal. 5,500 Beg. bal. Equipment 20,000 12,500 43,500 Accumulated Depreciation Beg. bal. 6,000 Adjusting X 11,300 X 9,300 X Closing 2,000 Adjusting f. Adjusting x End. bal. 11,000 End. bal. 6,000 Common Stock Salaries Payable 7,250 Beg. bal. d. Beg. bal. Adjusting X 59,500 7,250 3,565 X 43,500 2,000 > Adjusting X 9,300 X End. bal. 3,565 End. bal. 4,700 Retained Earnings Dividends