The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balance Credits Debits 30,000 15,000 20,000 Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total 6,000 9,000 40,500 9,500 65,000 65,000 The following is a summary of the transactions for the year a. Service revenue, $100,000, of which $30,000 was on account and the balance was received in cash b. Collected on accounts receivable, $27,300. c. Issued shares of common stock in exchange for $10,000 in cash. d. Paid salaries, $50,000 (of which $9,000 was for salaries payable at the end of the prior year). e Paid miscellaneous expense for various items, $24,000. f. Purchased equipment for $15,000 in cash. g. Paid $2,500 in cash dividends to shareholders 1 e Palu miscelldreous expense of various rems, D24,00U. f. Purchased equipment for $15,000 in cash. g. Paid $2,500 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $1,000 2. Depreciation for the year on the equipment is $2,000. 00 points 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-. Prepare an income statement for 2021. 7-b. Prepare a balance sheet as of December 31, 2021. 9. Prepare a post-closing trial balance, Cash Beg bal 30,000 Accounts Receivable 15,000 Beg bal End, bal 30,000 End, bal. 15,000 Equipment 20,000 Beg bal Accumulated Depreciation 6,000 Beg bal. End, bal. 20,000 End, bal 6.000 Beg bal. Salaries Payable 9,000 9,000 Beg. bal. Common Stock 40,500 10,000 d. C End, bal End, bal. 50,500 Dividends Beg. bal. 9 Retained Earnings 9,500 2,500 Beg. bal End, bal 7.000 End, bal Service Revenue Miscellaneous expense Beg. bal. Beg. bal. 100,000 a e 24,000 End, bal 100,000 End, bal 24,000 Depreciation Expense Beg, bal Salaries Expense Beg bal. d 41,000 End, bal End bal. 41,000 Credits 100 points EA 6,000 KARLIN COMPANY Unadjusted Trial Balance Account Title Debits Cash $ 45,800 Accounts receivable 17,700 Equipment 35,000 Accumulated depreciation Salaries payable Common stock Retained earnings Dividends Service revenue Salaries expense 41.000 Miscellaneous expenses 24,000 Totals $ 163,500 50,000 X 7,000 X 500 X 100.000 $ 163,500 KARLIN COMPANY Balance Sheet December 31, 2021 Assets Current assets Cash $ Accounts receivable Dividends 45,800 17.700 (1,500) 62.000 Property and equipment Equipment Accumulated depreciation BIO 35,000 (8,000) 89.000 Liabilities and Shareholders' Equity Current liabilities 1 Equipment Accumulated depreciation 35,000 (8,000) S 89,000 100 points Liabilities and Shareholders' Equity Current liabilities Salaries payable CA 1,000 1,000 Shareholders' equity Retained earnings Common stock s 50.000 X 38.000 88,000 89.000
