The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Debits Credits Cash 33,500 Accounts receivable 10, eee 15,000 Equipment Accumulated depreciation Salaries payable 4,5e0 6,eee 41,e00 7,e00 Common stock Retained earnings Total 58,500 58, 500 The following is a summary of the transactions for the year: a. Service revenue, $102,000, of which $30,600 was on account and the balance was received in cash. b. Collected on accounts receivable, $22,000. c. Issued shares of common stock in exchange for $7,500 in cash. d. Paid salaries, $37,000 (of which $6,000 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $20,000. f. Purchased equipment for $10,000 in cash. g. Paid $2,425 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $740. 2. Depreciation for the year on the equipment is $1,500. Required: 2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed
The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Debits Credits Cash 33,500 Accounts receivable 10, eee 15,000 Equipment Accumulated depreciation Salaries payable 4,5e0 6,eee 41,e00 7,e00 Common stock Retained earnings Total 58,500 58, 500 The following is a summary of the transactions for the year: a. Service revenue, $102,000, of which $30,600 was on account and the balance was received in cash. b. Collected on accounts receivable, $22,000. c. Issued shares of common stock in exchange for $7,500 in cash. d. Paid salaries, $37,000 (of which $6,000 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $20,000. f. Purchased equipment for $10,000 in cash. g. Paid $2,425 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $740. 2. Depreciation for the year on the equipment is $1,500. Required: 2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:
Account Title
Debits
Credits
Cash
33,5eе
Accounts receivable
Equipment
Accumulated depreciation
Salaries payable
Common stock
Retained earnings
10, 000
15,000
4,50e
6,000
41, eee
7,000
Total
58, 500
58,500
The following is a summary of the transactions for the year:
a. Service revenue, $102,000, of which $30,600 was on account and the balance was received in cash.
b. Collected on accounts receivable, $22,000.
c. Issued shares of common stock in exchange for $7,500 in cash.
d. Paid salaries, $37,000 (of which $6,000 was for salaries payable at the end of the prior year).
e. Paid miscellaneous expense for various items, $20,000.
f. Purchased equipment for $10,000 in cash.
g. Paid $2,425 in cash dividends to shareholders.
1. Accrued salaries at year-end amounted to $740.
2. Depreciation for the year on the equipment is $1,500.
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b7655a6-5464-4a8b-811a-b13cdb18931c%2F3f41510d-99ed-41d1-833a-0a2fe97e0fc3%2F3usxme7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:
Account Title
Debits
Credits
Cash
33,5eе
Accounts receivable
Equipment
Accumulated depreciation
Salaries payable
Common stock
Retained earnings
10, 000
15,000
4,50e
6,000
41, eee
7,000
Total
58, 500
58,500
The following is a summary of the transactions for the year:
a. Service revenue, $102,000, of which $30,600 was on account and the balance was received in cash.
b. Collected on accounts receivable, $22,000.
c. Issued shares of common stock in exchange for $7,500 in cash.
d. Paid salaries, $37,000 (of which $6,000 was for salaries payable at the end of the prior year).
e. Paid miscellaneous expense for various items, $20,000.
f. Purchased equipment for $10,000 in cash.
g. Paid $2,425 in cash dividends to shareholders.
1. Accrued salaries at year-end amounted to $740.
2. Depreciation for the year on the equipment is $1,500.
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.
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