The general ledger of the Karlin Company, a consulting company,at January 1, 2016, contained the following account balances:
Account Title Debits Credits Cash 32,600 Accountsreceivable 11,500 Equipment 18,000 Accumulateddepreciation 5,400 Salariespayable 6,750 Common stock 42,500 Retainedearnings 7,450 Total 62,100 62,100
The following is a summary of the transactions for the year:
a. Sales of services, $108,000, ofwhich $32,400 was on credit. b. Collected on accountsreceivable, $22,900. c. Issued shares of common stock inexchange for $9,000 in cash. d. Paid salaries, $39,250 (of which$6,750 was for salaries payable). e. Paid miscellaneous expenses,$21,200. f. Purchased equipment for $11,500in cash. g. Paid $2,575 in cash dividends toshareholders.
1. Accrued salaries at year-endamounted to $785. 2. Depreciation for the year on theequipment is $1,800.
Required information
Required:
Prepare the summary, adjusting and closing entries for each ofthe transactions listed. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)
1)Sales of services, $108,000, of which $32,400 was oncredit.
2)Collected on accounts receivable, $22,900.
3)Issued shares of common stock in exchange for $9,000 incash.
4)Paid salaries and wages, $39,250 (of which $6,750 was forsalaries payable).
5)Paid miscellaneous expenses, $21,200.
6)Purchased equipment for $11,500 in cash.
7)Paid $2,575 in cash dividends to shareholders.
8)Record the adjusting journal entry for accrued salaries andwages at year-end that amounted to $785.
9)Record the adjusting journal entry for annual depreciation of$1,800.
10)Record the entry to close the revenue accounts using theincome summary.
11)Record the entry to close the expense accounts using theincome summary. (Use a single entry, not a separate entry for eachexpense account.)
12)Record the entry to close the income summary account.
2) Post the transactions, adjusting and closing entries into theappropriate t-accounts. (Enter the letter of thetransaction in the column next to the amount.)
3) Prepare an unadjusted trialbalance.
4) Prepare an adjusted trial balance.
.
5) Prepare an income statement for 2016.
6) Prepare a balance sheet as of December 31, 2016.(Amounts to be deducted should be indicated by a minussign.)
7) Prepare a post-closing trial balance.
The general ledger of the Karlin Company, a consulting company,at January 1, 2016, contained the following account balances: |
| Account Title | Debits | Credits |
| Cash | 32,600 | |
| Accountsreceivable | 11,500 | |
| Equipment | 18,000 | |
| Accumulateddepreciation | 5,400 | |
| Salariespayable | 6,750 | |
| Common stock | 42,500 | |
| Retainedearnings | 7,450 | |
| Total | 62,100 | 62,100 |
The following is a summary of the transactions for the year:
| a. | Sales of services, $108,000, ofwhich $32,400 was on credit. |
| b. | Collected on accountsreceivable, $22,900. |
| c. | Issued shares of common stock inexchange for $9,000 in cash. |
| d. | Paid salaries, $39,250 (of which$6,750 was for salaries payable). |
| e. | Paid miscellaneous expenses,$21,200. |
| f. | Purchased equipment for $11,500in cash. |
| g. | Paid $2,575 in cash dividends toshareholders. |
| 1. | Accrued salaries at year-endamounted to $785. |
| 2. | Depreciation for the year on theequipment is $1,800. |
Required information
| Required: |
| Prepare the summary, adjusting and closing entries for each ofthe transactions listed. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.) 1)Sales of services, $108,000, of which $32,400 was oncredit. 2)Collected on accounts receivable, $22,900. 3)Issued shares of common stock in exchange for $9,000 incash. 4)Paid salaries and wages, $39,250 (of which $6,750 was forsalaries payable). 5)Paid miscellaneous expenses, $21,200. 6)Purchased equipment for $11,500 in cash. 7)Paid $2,575 in cash dividends to shareholders. 8)Record the adjusting journal entry for accrued salaries andwages at year-end that amounted to $785. 9)Record the adjusting journal entry for annual depreciation of$1,800. 10)Record the entry to close the revenue accounts using theincome summary. 11)Record the entry to close the expense accounts using theincome summary. (Use a single entry, not a separate entry for eachexpense account.) 12)Record the entry to close the income summary account. | |
| 2) | Post the transactions, adjusting and closing entries into theappropriate t-accounts. (Enter the letter of thetransaction in the column next to the amount.) |
| 3) | Prepare an unadjusted trialbalance. |
| 4) | Prepare an adjusted trial balance. |
.
5) Prepare an income statement for 2016. | |
6) Prepare a balance sheet as of December 31, 2016.(Amounts to be deducted should be indicated by a minussign.) | |
7) Prepare a post-closing trial balance. | |
