The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances Account Title Debits Credits Cash 29,300 Accounts receivable 17,000 Equipment 29,000 Accumulated depreciation 8,700 Salaries payable 9,500 Common stock 48,000 Retained earnings 9,100 Total 75,300 75,300 The following is a summary of the transactions for the year Service revenue, $130,000, of which $39,000 was on account and the balance was received in cash Collected on accounts receivable, $26,200 Issued shares of common stock in exchange for $15,000 in cash Paid salaries, $47,500 (of which $9,500 was for salaries payable at the end of the prior year) Paid miscellaneous expense for various items, $25,600 Purchased equipment for $17,500 in cash Paid $3,150 in cash dividends to shareholders Accrued salaries at year end amounted to $950 Depreciation for the year on the equipment is $2,900 2 , 5, 8 Prepare the summary, adjusting and closing entries for each of the transactions listed 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 9 Prepare a post closing trial balance

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Posted on Sep 02, 2024

The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Debits Credits Cash 29,300

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

Account Title	Debits	Credits
Cash	29,300
Accounts receivable	17,000
Equipment	29,000
Accumulated depreciation		8,700
Salaries payable		9,500
Common stock		48,000
Retained earnings		9,100
Total	75,300	75,300

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

Service revenue, $130,000, of which $39,000 was on account and the balance was received in cash.
Collected on accounts receivable, $26,200.
Issued shares of common stock in exchange for $15,000 in cash.
Paid salaries, $47,500 (of which $9,500 was for salaries payable at the end of the prior year).
Paid miscellaneous expense for various items, $25,600.
Purchased equipment for $17,500 in cash.
Paid $3,150 in cash dividends to shareholders.

Accrued salaries at year-end amounted to $950.
Depreciation for the year on the equipment is $2,900

2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed.

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. 9. Prepare a post-closing trial balance.