Question

Please help!! Accounting Help!!

The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Credits Debits 30,000 15,000 20,000 Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total 6,000 9,000 40,500 9,500 65,000 65,000 The following is a summary of the transactions for the year: a. Service revenue, $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. 1. Accrued salaries at year-end amounted to $1,000. 2. Depreciation for the year on the equipment is $2,000. 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.

Answer 1

Credit Karlin Company Journal entries Date Account Accounts Receivable Cash Service Revenue Debit $ 30,000 $ 70,000 $ 100,000 b $ 27,300 Cash Accounts Receivable $ 27,300 $ 10,000 Cash Common Stock $ 10,000 Salaries Payable Salaries expense Cash $ 9,000 $ 41,000 $ 50,000 $ 24,000 Miscellaneous expenses Cash $ 24,000 $ 15,000 Equipment Cash $ 15,000 $ 2,500 $ 2,500 g Dividends Cash Adjusting entries Salaries expense Salaries Payable $ 1,000 $ 1,000 $ 2,000 $ 2,000 2 Depreciation expense Accumulated Depreciation Closing entries 3 Service Revenue Income Summary $ 100,000 $ 100,000 $ 68,000 Income Summary Salaries expense Miscellaneous expenses Depreciation expense $ 42,000 $ 24,000 $ 2,000 5 $ 32,000 Income Summary Retained Earnings $ 32,000 6 $ 2,500 Retained Earnings Dividends $ 2,500

Credit Date Date Credit Date Karlin Company T Accounts Date Debit Date Cash Op bal $ 30,000 d $ 70,000 e нь $ 27,300 C $ 10,000 8 Debit Date Credit Accounts Receivable $15,000 $ 30,000 b $ 27,300 Debit Date Equipment $ 20,000 $15,000 Debit Date Credit Accumulated Depreciation Op bal $ 6,000 2 $ 2,000 Op bal f $ 50,000 Op bal $ 24,000 $ 15,000 $ 2,500 Bal. Bal. Bal. $ 8,000 $ 45,800 Salaries Payable $ 9,000 Op bal 1 $ 17,700 Common Stock Op bal C $ 35,000 Retained Earnings $ 2,500 Op bal | 5 Bal. Dividends $ 2,500 6 d 6 g $ 2,500 $ $ 9,000 1,000 $ 40,500 $10,000 $ 9,500 $ 32,000 $ 1,000 $50,500 Bal. Bal. Service Revenue a $100,000 Bal. Salaries expense $41,000 $ 1,000 4 Bal. $ 39,000 Miscellaneous expenses $24,000 4 $ 24,000 $ . Depreciation expense $ 2,000 4 $ 2,000 $100,000 e 2 d 1 3 $ 42,000 $ . Bal. $. Bal. $ - Bal. $ . Income Summary $ 68,000 3 $ 32,000 4 5 $100,000 Bal. $ .

Karlin Company Account Names Cash Accounts Receivable Equipment Accumulated Depreciation Salaries Payable Common Stock Retained Earnings Dividends Service Revenue Salaries expense Miscellaneous expenses Depreciation expense Totals Opening TB Debit Credit 30,000 15,000 20,000 6,000 9,000 40,500 9,500 Unadjusted TB Debit Credit 45,800 17,700 35,000 6,000 Adjusted TB Debit Credit 45,800 17,700 35,000 8,000 1,000 50,500 9,500 2,500 100,000 42,000 24,000 2,000 169,000 169,000 Post Closing TB Debit Credit 45,800 17,700 35,000 8,000 1,000 50,500 39,000 50,500 9,500 2,500 100,000 41,000 24,000 65,000 65,000 166,000 166,000 98,500 98,500

100,000 Karlin Company Income Statement For the Year Ended Dec 31, 2021 Service Revenue Expenses Salaries expense Miscellaneous expenses Depreciation expense Total Operating expenses Net Income 42,000 24,000 2,000 68,000 32,000 Statement of Retained Earnings For the Year Ended Dec 31, 2021 Beginning balance Net Income Less Dividends Ending Balance 9,500 32,000 (2,500) 39,000

Karlin Company Balance Sheet As of Dec 31, 2021 Assets Current Assets Cash Accounts Receivable Total Current Assets Liabilities & Stockholders Equity Current Liabilities 45,800 Salaries Payable 17,700 63,500 Total Current Liabilities 1,000 1,000 Non-Current Assets Equipment Accumulated Depreciation Total Non-Current Assets Stockholders Equity 35,000 Common Stock (8,000) Retained earnings 27,000 Total Stockholders Equity 50,500 39,000 89,500 Total Assets 90,500 Total Liabilities & Stockholders Equity 90,500