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The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Debits 32,600 11,500 18,000 Account Title
The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Debits 32,600 11,500 18,000 Account Title Credits Cash Accounts receivable Equipment Accumulated depreciation Salaries payable 5,400 6,750 42,500 7,450 Common stock Retained earnings Total 62,100 62,100 The following is a summary of the transactions for the year: a. Service revenue, $108,000, of which $32,400 was on account and the balance was received in cash. b. Collected on accounts receivable, $22,900. c. Issued shares of common stock in exchange for $9,000 in cash. d. Paid salaries, $39,250 (of which $6,750 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $21,200 f. Purchased equipment for $11,500 in cash. g. Paid $2,575 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $785 2. Depreciation for the year on the equipment is $1,800 Required: 2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed. 3. Post the transactions, adjusting and closing entries into the appropriate t-accounts. 4. Prepare an unadjusted trial balance. 6. Prepare an adjusted trial balance. 7-a. Prepare an income statement for 2021. 7-b. Prepare a balance sheet as of December 31, 2021 9. Prepare a post-closing trial balance. Prepare an unadjusted trial balance. KARLIN COMPANY Unadjusted Trial Balance Debits Credits Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Dividends Service revenue Salaries expense Miscellaneous expenses 0$ $ Totals
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