The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the followingaccount balances:Account Title Debits CreditsCash 30,000Accounts receivable 15,000Equipment 20,000Accumulated depreciation 6,000Salaries payable 9,000Common stock 40,500Retained earnings 9,500Total 65,000 65,000 The following is a summary of the transactions for the year:a. Sales of services, $100,000, of which $30,000 was on credit.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).e. Paid miscellaneous expenses, $24,000.f. Purchased equipment for $15,000 in cash.g. Paid $2,500 in cash dividends to shareholders.Required:1. Set up the necessary T-accounts and enter the beginning balances from the trial balance.
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following
account balances:
Account Title Debits Credits
Cash 30,000
Equipment 20,000
Salaries payable 9,000
Common stock 40,500
Total 65,000 65,000
The following is a summary of the transactions for the year:
a. Sales of services, $100,000, of which $30,000 was on credit.
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).
e. Paid miscellaneous expenses, $24,000.
f. Purchased equipment for $15,000 in cash.
g. Paid $2,500 in cash dividends to shareholders.
Required:
1. Set up the necessary T-accounts and enter the beginning balances from the
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