The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:     Account Title Debits   Credits   Cash 29,300       Accounts receivable 17,000       Equipment 29,000       Accumulated depreciation     8,700   Salaries payable     9,500   Common stock     48,000   Retained earnings     9,100   Total 75,300   75,300       The following is a summary of the transactions for the year: Service revenue, $130,000, of which $39,000 was on account and the balance was received in cash. Collected on accounts receivable, $26,200. Issued shares of common stock in exchange for $15,000 in cash. Paid salaries, $47,500 (of which $9,500 was for salaries payable at the end of the prior year). Paid miscellaneous expense for various items, $25,600. Purchased equipment for $17,500 in cash. Paid $3,150 in cash dividends to shareholders. Accrued salaries at year-end amounted to $950. Depreciation for the year on the equipment is $2,900.   Post the transactions, adjusting and closing entries into the appropriate t-accounts. (Enter the letter of the transaction in the column next to the amount.)         Cash   Accounts Receivable Beg. bal. 29,300       Beg. bal. 17,000                                                                             End. bal. 29,300       End. bal. 17,000                       Equipment   Accumulated Depreciation Beg. bal. 29,000       Beg. bal.   8,700                                                         End. bal. 29,000       End. bal.   8,700                     Salaries Payable   Common Stock Beg. bal.   9,500     Beg. bal.   48,000                                                         End. bal.   9,500     End. bal.   48,000                     Retained Earnings   Dividends Beg. bal.   9,100     Beg. bal.   0                                                         End. bal.   9,100     End. bal.                         Service Revenue   Miscellaneous expense Beg. bal. 0       Beg. bal. 0                                                           End. bal.         End. bal.                         Depreciation Expense   Salaries Expense Beg. bal. 0       Beg. bal.                                                             End. bal.         End. bal.     Prepare an unadjusted trial balance.         KARLIN COMPANY Unadjusted Trial Balance Account Title Debits Credits Cash     Accounts receivable     Equipment     Accumulated depreciation     Salaries payable     Common stock     Retained earnings     Dividends     Service revenue     Salaries expense     Miscellaneous expenses     Totals $0 $0 Prepare an adjusted trial balance.         KARLIN COMPANY Adjusted Trial Balance Account Title Debits Credits Cash     Accounts receivable     Equipment     Accumulated depreciation     Salaries payable     Common stock     Retained earnings     Dividends     Service revenue     Salaries expense     Miscellaneous expenses     Depreciation expense     Totals $0 $0 Prepare an income statement for 2021.         KARLIN COMPANY Income Statement For the Year Ended December 31, 2021                                               0     $0   Prepare a balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)         KARLIN COMPANY Balance Sheet December 31, 2021 Assets                             0                             0 Liabilities and Shareholders' Equity                 0                             0     $0   Prepare a post-closing trial balance.         KARLIN COMPANY Post-Closing Trial Balance Account Title Debits Credits Cash     Accounts receivable     Equipment     Accumulated depreciation     Salaries payable     Common stock     Retained earnings     Service revenue     Salaries expense     Miscellaneous expenses     Depreciation expense     Totals $0 $0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 29,300      
Accounts receivable 17,000      
Equipment 29,000      
Accumulated depreciation     8,700  
Salaries payable     9,500  
Common stock     48,000  
Retained earnings     9,100  
Total 75,300   75,300  
 

 

The following is a summary of the transactions for the year:

  1. Service revenue, $130,000, of which $39,000 was on account and the balance was received in cash.
  2. Collected on accounts receivable, $26,200.
  3. Issued shares of common stock in exchange for $15,000 in cash.
  4. Paid salaries, $47,500 (of which $9,500 was for salaries payable at the end of the prior year).
  5. Paid miscellaneous expense for various items, $25,600.
  6. Purchased equipment for $17,500 in cash.
  7. Paid $3,150 in cash dividends to shareholders.
  1. Accrued salaries at year-end amounted to $950.
  2. Depreciation for the year on the equipment is $2,900.

 

Post the transactions, adjusting and closing entries into the appropriate t-accounts. (Enter the letter of the transaction in the column next to the amount.)

 
 
 
 
Cash   Accounts Receivable
Beg. bal. 29,300       Beg. bal. 17,000    
                 
                 
                 
                 
End. bal. 29,300       End. bal. 17,000    
                 
Equipment   Accumulated Depreciation
Beg. bal. 29,000       Beg. bal.   8,700  
                 
                 
                 
End. bal. 29,000       End. bal.   8,700  
                 
Salaries Payable   Common Stock
Beg. bal.   9,500     Beg. bal.   48,000  
                 
                 
                 
End. bal.   9,500     End. bal.   48,000  
                 
Retained Earnings   Dividends
Beg. bal.   9,100     Beg. bal.   0  
                 
                 
                 
End. bal.   9,100     End. bal.      
                 
Service Revenue   Miscellaneous expense
Beg. bal. 0       Beg. bal. 0    
                 
                 
                 
End. bal.         End. bal.      
                 
Depreciation Expense   Salaries Expense
Beg. bal. 0       Beg. bal.      
                 
                 
                 
End. bal.         End. bal.    

Prepare an unadjusted trial balance.

 
 
 
 
KARLIN COMPANY
Unadjusted Trial Balance
Account Title Debits Credits
Cash    
Accounts receivable    
Equipment    
Accumulated depreciation    
Salaries payable    
Common stock    
Retained earnings    
Dividends    
Service revenue    
Salaries expense    
Miscellaneous expenses    
Totals $0 $0

Prepare an adjusted trial balance.

 
 
 
 
KARLIN COMPANY
Adjusted Trial Balance
Account Title Debits Credits
Cash    
Accounts receivable    
Equipment    
Accumulated depreciation    
Salaries payable    
Common stock    
Retained earnings    
Dividends    
Service revenue    
Salaries expense    
Miscellaneous expenses    
Depreciation expense    
Totals $0 $0

Prepare an income statement for 2021.

 
 
 
 
KARLIN COMPANY
Income Statement
For the Year Ended December 31, 2021
     
     
     
     
     
     
     
    0
    $0
 

Prepare a balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

 
 
 
 
KARLIN COMPANY
Balance Sheet
December 31, 2021
Assets
     
     
     
     
    0
     
     
     
     
    0
Liabilities and Shareholders' Equity
     
     
    0
     
     
     
     
    0
    $0
 

Prepare a post-closing trial balance.

 
 
 
 
KARLIN COMPANY
Post-Closing Trial Balance
Account Title Debits Credits
Cash    
Accounts receivable    
Equipment    
Accumulated depreciation    
Salaries payable    
Common stock    
Retained earnings    
Service revenue    
Salaries expense    
Miscellaneous expenses    
Depreciation expense    
Totals $0 $0
 
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