Question

The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits Credits 31,700 13,000 21,000 6,300 7,500 44,000 7,900 65,700 65,700 The following is a summary of the transactions for the year: a. Sales of services, $114,000, of which $34,200 was on credit. b. Collected on accounts receivable, $23,800 c. Issued shares of common stock in exchange for $11,000 in cash d. Paid salaries, $41,500 (of which $7,500 was for salaries payable) e. Paid miscellaneous expenses, $22,400 f. Purchased equipment for $13,000 in cash g. Paid $2,750 in cash dividends to shareholders 1. Accrued salaries at year-end amounted to $830 2. Depreciation for the year on the equipment is $2,100

Answer 1

Journal Entries
Date	Particulars	Debit($)	Credit($)
a	Cash	79800
	Account Receivable	34200
	Service Revenue		114000
	Sales of Service
b	Cash	23800
	Account Receivable		23800
	Collected on Account Receivable
c	Cash	11000
	Common Stock		11000
	issued Shares og Common Stock
d	Salaries Expense	34000
	Salaries Payable	7500
	Cash		41500
	Paid Salaries
e	Miscellaneous Expenses	22400
	Cash		22400
	Paid Miscellaneous Expense
f	Equipment	13000
	Cash		13000
	Purchased Equipment
g	Common Dividends	2750
	Cash		2750
	Dividends Paid on Cash
1	Salaries Expenses	830
	Salaries Payable		830
	Accrued Salaries
2	Depreciation Expenses	2100
	Accumulated Depreciation		2100
	Depreciation on Equipment

Cash
Date	Debit($)	Credit($)	Balance($)
Opening	31700		31700
a	79800		111500
b	23800		135300
c	11000		146300
d		41500	104800
e		22400	82400
f		13000	69400
g		2750	66650

Account Receivable
Date	Debit($)	Credit($)	Balance($)
Opening	13000		13000
a	34200		47200
b		23800	23400

Service Revenue
Date	Debit($)	Credit($)	Balance($)
a		114000	-114000

Common Stock
Date	Debit($)	Credit($)	Balance($)
Opening		44000	-44000
c		11000	-55000

Salaries Expense
Date	Debit($)	Credit($)	Balance($)
d	34000		34000
1	830		34830

Salaries Payable
Date	Debit($)	Credit($)	Balance($)
Opening		7500	-7500
d	7500		0
1		830	-830

Miscellaneous Expenses
Date	Debit($)	Credit($)	Balance($)
e	22400		22400

Equipment
Date	Debit($)	Credit($)	Balance($)
Opening	21000		21000
f	13000		34000

Common Dividends
Date	Debit($)	Credit($)	Balance($)
g	2750		2750

Depreciation Expenses
Date	Debit($)	Credit($)	Balance($)
2	2100		2100

Accumulated Depreciation
Date	Debit($)	Credit($)	Balance($)
Opening		6300	-6300
2		2100	-8400

Retained Earnings
Date	Debit($)	Credit($)	Balance($)
Opening		7900	-7900

Adjusted Trail Balamce
Particulars	Debit($)	Credit($)
Cash	66650
Account Receivable	23400
Service Revenue		114000
Common Stock		55000
Salaries Expense	34830
Salaries Payable		830
Miscellaneous Expenses	22400
Equipment	34000
Common Dividends	2750
Depreciation Expenses	2100
Accumulated Depreciation		8400
Retained Earnings		7900
Total	186130	186130

Income Statement
Particulars	Amount($)	Amount($)
Revenues:
Service Revenue		114000
Less: Expenses
Salaries Expense	34830
Miscellaneous Expenses	22400
Depreciation Expenses	2100
		59330
Net Income		54670

Equity Statement
Particulars	Amount($)	Amount($)
Common Stock		55000
Retained Earnings	7900
Less: Common Dividends	2750	5150
Net Income		54670
Stock holders Equity		114820

Balance Sheet
Assets	Debit($)	Liabilities	Credit($)
Cash	66650	Salaries Payable	830
Account Receivable	23400	Stock holders Equity	114820
Equipment                              34000
Accumulated Depreciation 8400	25600
	115650		115650

Post Closing Entries
Date	Particulars	Debit($)	Credit($)
31-Dec	Service Revenue	114000
	Income Summary		114000
	Closing Revenue Accounts
31-Dec	Income Summary	59330
	Salaries Expense		34830
	Miscellaneous Expenses		22400
	Depreciation Expenses		2100
	Closing Expanses Accounts
31-Dec	Income Summary	54670
	Retained Earnings		54670
	Closing Income Summary Account

Post Closing Trail Balamce
Particulars	Debit($)	Credit($)
Cash	66650
Account Receivable	23400
Stock holders Equity		114820
Salaries Payable		830
Equipment	34000
Accumulated Depreciation		8400
Total	124050	124050