The general ledger of the Karlin Company, a consulting company, at January 1, 2024, contained the following account balances: Account Title Debits Credits Cash $30,000 Accounts receivable 15,000 Equipment 20,000 Accumulated depreciation $ 6,000 Salaries payable 9,000 Common stock 40,500 9,500 $65,000 $65,000 Retained earnings Total The following is a summary of the transactions for the year: a. Provided services, $100,000, of which $30,000 was on account and the balance was received in cash. 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 at the end of the prior year). e. Paid miscellaneous expense for various items, $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 Taccounts and enter the beginning balances from the trial balance. 2. Prepare a general journal entry for each of the summary transactions listed above. 3. Post the journal entries to the accounts. 4. Prepare an unadjusted trial balance. 5. Prepare and post adjusting journal entries. Accrued salaries at year-end amounted to $1,000. Depreciation for the year on the equipment is $2,000. 6. Prepare an adjusted trial balance. 7. Prepare an income statement for 2024 and a balance sheet as of December 31, 2024. 8. Prepare and post-closing entries. 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 Debits Credits Cash $30,000 Accounts receivable 15,000 Equipment 20,000 Accumulated depreciation $ 6,000 Salaries payable 9,000 Common stock 40,500 9,500 $65,000 $65,000 Retained earnings Total The following is a summary of the transactions for the year: a. Provided services, $100,000, of which $30,000 was on account and the balance was received in cash. 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 at the end of the prior year). e. Paid miscellaneous expense for various items, $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 Taccounts and enter the beginning balances from the trial balance. 2. Prepare a general journal entry for each of the summary transactions listed above. 3. Post the journal entries to the accounts. 4. Prepare an unadjusted trial balance. 5. Prepare and post adjusting journal entries. Accrued salaries at year-end amounted to $1,000. Depreciation for the year on the equipment is $2,000. 6. Prepare an adjusted trial balance. 7. Prepare an income statement for 2024 and a balance sheet as of December 31, 2024. 8. Prepare and post-closing entries. 9. Prepare a post-closing trial balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The general ledger of the Karlin Company, a consulting company, at January 1, 2024, contained the following
account balances:
Account Title
Debits
Credits
Cash
$30,000
Accounts receivable
15,000
Equipment
20,000
Accumulated depreciation
$ 6,000
Salaries payable
9,000
Common stock
40,500
9,500
$65,000
$65,000
Retained earnings
Total
The following is a summary of the transactions for the year:
a. Provided services, $100,000, of which $30,000 was on account and the balance was received in cash.
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 at the end of the prior year).
e. Paid miscellaneous expense for various items, $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 Taccounts and enter the beginning balances from the trial balance.
2. Prepare a general journal entry for each of the summary transactions listed above.
3. Post the journal entries to the accounts.
4. Prepare an unadjusted trial balance.
5. Prepare and post adjusting journal entries. Accrued salaries at year-end amounted to $1,000. Depreciation for
the year on the equipment is $2,000.
6. Prepare an adjusted trial balance.
7. Prepare an income statement for 2024 and a balance sheet as of December 31, 2024.
8. Prepare and post-closing entries.
9. Prepare a post-closing trial balance.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 1 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education