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The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances Account Title Cash Accounts receivable Equipment
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits Credits 27,800 19,500 34,000 10,200 10,750 50,500 9,850 81,300 81,300 The following is a summary of the transactions for the year: a. Sales of services, $140,000, of which $42,000 was on credit. b. Collected on accounts receivable, $27,700 c. Issued shares of common stock in exchange for $17,500 in cash d. Paid salaries, $51,250 (of which $10,750 was for salaries payable) e. Paid miscellaneous expenses, $27,600 f. Purchased equipment for $20,000 in cash. g. Paid $3,400 in cash dividends to shareholders 1. Accrued salaries at year-end amounted to $1,025 2. Depreciation for the year on the equipment is $3,400 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 2018 7-b. Prepare a balance sheet as of December 31, 2018 9. Prepare a post-closing trial balance
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