Question
The general ledger of the Karlin Company, a consulting company, at January 1, 2024, contained the following account balances: Account Title Debits Credits Cash $
The general ledger of the Karlin Company, a consulting company, at January 1, 2024, contained the following account balances:
Account Title | Debits | Credits |
---|---|---|
Cash | $ 32,000 | |
Accounts receivable | 12,500 | |
Equipment | 20,000 | |
Accumulated depreciation | $ 6,000 | |
Salaries payable | 7,250 | |
Common stock | 43,500 | |
Retained earnings | 7,750 | |
Total | $ 64,500 | $ 64,500 |
The following is a summary of the transactions for the year:
Provided services, $112,000, of which $33,600 was on account and the balance was received in cash.
Collected on accounts receivable, $23,500.
Issued shares of common stock in exchange for $10,500 in cash.
Paid salaries, $40,750 (of which $7,250 was for salaries payable at the end of the prior year).
Paid miscellaneous expense for various items, $22,000.
Purchased equipment for $12,500 in cash.
Paid $2,700 in cash dividends to shareholders.
Additional information:
Accrued salaries at year-end amounted to $815.
Depreciation for the year on the equipment is $2,000.
Required:
9. Prepare a post-closing trial balance.
Prepare a post-closinq trial balanceStep by Step Solution
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