The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Debits Credits
Cash 29,000
Accounts receivable 17,500
Equipment 30,000
Accumulated depreciation 9,000
Salaries payable 9,750
Common stock 48,500
Retained earnings 9,250
Total 76,500 76,500
The following is a summary of the transactions for the year:
A. Service revenue, $132,000, of which $39,600 was on account and the balance was received in cash.
B. Collected on accounts receivable, $26,500. Issued shares of common stock in exchange for $15,500 in cash.
C. Paid salaries, $48,250 (of which $9,750 was for salaries payable at the end of the prior year).
D. Paid miscellaneous expense for various items, $26,000.
E. Purchased equipment for $18,000 in cash.
F. Paid $3,200 in cash dividends to shareholders.
G. Accrued salaries at year-end amounted to $965.
H. Depreciation for the year on the equipment is $3,000.
Required:
Prepare : summary, adjusting and closing entriesfor each transaction listed.
Prepare an unadjusted trial balance, an adjusting trial balance, an income statement, balance sheet, and a post lcosing trial balance.