The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances: Account Title Debits Credits Cash 33,500 Accounts receivable 10,000 Equipment 15,000 Accumulated depreciation 4,500 Salaries payable 6,000 Common stock 41,000 Retained earnings 7,000 Total 58,500 58,500 The following is a summary of the transactions for the year:
Sales of services, $102,000, of which $30,600 was on credit. Collected on accounts receivable, $22,000. Issued shares of common stock in exchange for $7,500 in cash. Paid salaries, $37,000 (of which $6,000 was for salaries payable). Paid miscellaneous expenses, $20,000. Purchased equipment for $10,000 in cash. Paid $2,425 in cash dividends to shareholders. Accrued salaries at year-end amounted to $740. Depreciation for the year on the equipment is $1,500.
Required: Entries
1) Record the entry to close the revenue accounts using the income summary.
2)Record the entry to close the expense accounts using the income summary.
3)Record the entry to close the income summary account.
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances: Account Title Debits Credits Cash 33,500 Accounts receivable 10,000 Equipment 15,000 Accumulated depreciation 4,500 Salaries payable 6,000 Common stock 41,000 Retained earnings 7,000 Total 58,500 58,500 The following is a summary of the transactions for the year:
Sales of services, $102,000, of which $30,600 was on credit. Collected on accounts receivable, $22,000. Issued shares of common stock in exchange for $7,500 in cash. Paid salaries, $37,000 (of which $6,000 was for salaries payable). Paid miscellaneous expenses, $20,000. Purchased equipment for $10,000 in cash. Paid $2,425 in cash dividends to shareholders. Accrued salaries at year-end amounted to $740. Depreciation for the year on the equipment is $1,500.
Required: Entries
1) Record the entry to close the revenue accounts using the income summary.
2)Record the entry to close the expense accounts using the income summary.
3)Record the entry to close the income summary account.
Related questions
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. | |
