The general ledger of the Karlin Company, a consulting company, at January 1, 2024, contained the following account balances: Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits $ 28,400 18,500 32,000 $ 78,900 Credits $ 9,600 10,250 49,500 9,550 $ 78,900 The following is a summary of the transactions for the year: a. Provided services, $136,000, of which $40,800 was on account and the balance was received in cash. b. Collected on accounts receivable, $27,100. c. Issued shares of common stock in exchange for $16,500 in cash. d. Paid salaries, $49,750 (of which $10,250 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $26,800. f. Purchased equipment for $19,000 in cash. g. Paid $3,300 in cash dividends to shareholders. Additional information: h. Accrued salaries at year-end amounted to $995. i. Depreciation for the year on the equipment is $3,200. Required: 1 to 3. Prepare a general journal entry for each of the summary transactions listed. Record beginning balances in the T-accounts (on the T-accounts tab). Post the journal entries to the T-accounts. 4. Using the T-account balances, prepare an unadjusted trial balance. 5. Prepare adjusting journal entries using the additional information provided. Post to the T-accounts (on the T-accounts tab). 6. Using the adjusted T-account balances, prepare an adjusted trial balance. 7-a. Prepare an income statement for 2024. 7-b. Prepare a balance sheet as of December 31, 2024. 8. Prepare closing entries, and then post to the T-accounts (on the T-accounts tab). 9. Prepare a post-closing trial balance.
The general ledger of the Karlin Company, a consulting company, at January 1, 2024, contained the following account balances: Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits $ 28,400 18,500 32,000 $ 78,900 Credits $ 9,600 10,250 49,500 9,550 $ 78,900 The following is a summary of the transactions for the year: a. Provided services, $136,000, of which $40,800 was on account and the balance was received in cash. b. Collected on accounts receivable, $27,100. c. Issued shares of common stock in exchange for $16,500 in cash. d. Paid salaries, $49,750 (of which $10,250 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $26,800. f. Purchased equipment for $19,000 in cash. g. Paid $3,300 in cash dividends to shareholders. Additional information: h. Accrued salaries at year-end amounted to $995. i. Depreciation for the year on the equipment is $3,200. Required: 1 to 3. Prepare a general journal entry for each of the summary transactions listed. Record beginning balances in the T-accounts (on the T-accounts tab). Post the journal entries to the T-accounts. 4. Using the T-account balances, prepare an unadjusted trial balance. 5. Prepare adjusting journal entries using the additional information provided. Post to the T-accounts (on the T-accounts tab). 6. Using the adjusted T-account balances, prepare an adjusted trial balance. 7-a. Prepare an income statement for 2024. 7-b. Prepare a balance sheet as of December 31, 2024. 8. Prepare closing entries, and then post to the T-accounts (on the T-accounts tab). 9. Prepare a post-closing trial balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Req 1 to 3
Req 4
Prepare an income statement for 2024.
Service revenue
Operating expenses:
Salaries expense
Miscellaneous expense
Depreciation expense
Net income
KARLIN COMPANY
Income Statement
For the Year Ended December 31, 2024
Total operating expenses
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Transcribed Image Text:Cycle Project i
The general ledger of the Karlin Company, a consulting company, at January 1, 2024, contained the following account balances:
Debits
$ 28,400
18,500
32,000
Account Title
Cash
Accounts receivable
Equipment
Accumulated depreciation
Salaries payable
Common stock
Retained earnings
Total
The following is a summary of the transactions for the year:
a. Provided services, $136,000, of which $40,800 was on account and the balance was received in cash.
b. Collected on accounts receivable, $27,100.
c. Issued shares of common stock in exchange for $16,500 in cash.
d. Paid salaries, $49,750 (of which $10,250 was for salaries payable at the end of the prior year).
e. Paid miscellaneous expense for various items, $26,800.
f. Purchased equipment for $19,000 in cash.
g. Paid $3,300 in cash dividends to shareholders.
Additional information:
h. Accrued salaries at year-end amounted to $995.
i. Depreciation for the year on the equipment is $3,200.
Required:
1 to 3. Prepare a general journal entry for each of the summary transactions listed. Record beginning balances in the T-accounts (on
the T-accounts tab). Post the journal entries to the T-accounts.
4. Using the T-account balances, prepare an unadjusted trial balance.
5. Prepare adjusting journal entries using the additional information provided. Post to the T-accounts (on the T-accounts tab).
6. Using the adjusted T-account balances, prepare an adjusted trial balance.
7-a. Prepare an income statement for 2024.
7-b. Prepare a balance sheet as of December 31, 2024.
W
S
8. Prepare closing entries, and then post to the T-accounts (on the T-accounts tab).
9. Prepare a post-closing trial balance.
3
E
$ 9,600
10,250
49,500
9,550
$ 78,900 $ 78,900
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