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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 Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits Credits 28,700 18,000 31,000 77,700 9,300 10,000 49,000 9,400 77,700 The following is a summary of the transactions for the year: a. Service revenue, $134,000, of which $40,200 was on account and the balance was received in cash. b. Collected on accounts receivable, $26,800. c. Issued shares of common stock in exchange for $16,000 in cash. d. Paid salaries, $49,000 (of which $10,000 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $26,400. f. Purchased equipment for $18,500 in cash. g. Paid $3,250 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $980. 2. Depreciation for the year on the equipment is $3,100. 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.

The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits Credits 28,700 18,000 31,000 77,700 9,300 10,000 49,000 9,400 77,700 The following is a summary of the transactions for the year: a. Service revenue, $134,000, of which $40,200 was on account and the balance was received in cash. b. Collected on accounts receivable, $26,800. c. Issued shares of common stock in exchange for $16,000 in cash. d. Paid salaries, $49,000 (of which $10,000 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $26,400. f. Purchased equipment for $18,500 in cash. g. Paid $3,250 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $980. 2. Depreciation for the year on the equipment is $3,100. 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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 Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits Credits 28,700 18,000 31,000 77,700 9,300 10,000 49,000 9,400 77,700 The following is a summary of the transactions for the year: a. Service revenue, $134,000, of which $40,200 was on account and the balance was received in cash. b. Collected on accounts receivable, $26,800. c. Issued shares of common stock in exchange for $16,000 in cash. d. Paid salaries, $49,000 (of which $10,000 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $26,400. f. Purchased equipment for $18,500 in cash. g. Paid $3,250 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $980. 2. Depreciation for the year on the equipment is $3,100. 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.
Transcribed Image Text:The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits Credits 28,700 18,000 31,000 77,700 9,300 10,000 49,000 9,400 77,700 The following is a summary of the transactions for the year: a. Service revenue, $134,000, of which $40,200 was on account and the balance was received in cash. b. Collected on accounts receivable, $26,800. c. Issued shares of common stock in exchange for $16,000 in cash. d. Paid salaries, $49,000 (of which $10,000 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $26,400. f. Purchased equipment for $18,500 in cash. g. Paid $3,250 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $980. 2. Depreciation for the year on the equipment is $3,100. 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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