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The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances:
Account Title Debits Credits
Cash 30,000
Accounts receivable 15,000
Equipment 20,000
Accumulated depreciation 6,000
Salaries payable 9,000
Common stock 40,500
Retained earnings 9,500
Total 65,000 65,000
The following is a summary of the transactions for the year:
Sales of services, $100,000, of which $30,000 was on credit.
Collected on accounts receivable, $27,300.
Issued shares of common stock in exchange for $10,000 in cash.
Paid salaries, $50,000 (of which $9,000 was for salaries payable).
Paid miscellaneous expenses, $24,000.
Purchased equipment for $15,000 in cash.
Paid $2,500 in cash dividends to shareholders.
Accrued salaries at year-end amounted to $1,000.
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 2018.
7-b. Prepare a balance sheet as of December 31, 2018.
9. Prepare a post-closing trial balance.

Respuesta :

anthougo

Answer:

Karlin Company

T-Accounts

Cash

Account Title             Debits       Credits

Beginning balance    30,000

Service Revenue       70,000

Accounts receivable 27,300

Common Stock         10,000

Salaries payable                          9,000

Salaries expense                       41,000

Miscellaneous expenses         24,000

Equipment                                 15,000

Dividends                                   2,500

Balance                                    45,800

Totals                 137,300        137,300

Accounts receivable

Account Title             Debits       Credits

Beginning balance   15,000

Service Revenue     30,000

Cash                                          27,300

Balance                                      17,700

Totals                      45,000     45,000

Equipment

Account Title             Debits       Credits

Beginning balance   20,000

Cash                          15,000

Balance                                      35,000

Totals                       35,000      35,000

Accumulated depreciation

Account Title             Debits       Credits

Beginning balance                       6,000

Depreciation expense                 2,000

Balance                      8,000

Totals                         8,000        8,000

Salaries payable

Account Title             Debits       Credits

Beginning balance                       9,000

Cash                           9,000

Salaries Expense                          1,000

Balance                       1,000

Totals                        10,000      10,000

Common stock

Account Title             Debits       Credits

Beginning balance                     40,500

Cash                                            10,000

Balance                     50,500

Totals                        50,500     50,500

Retained earnings

Account Title             Debits       Credits

Beginning balance                      9,500

Dividend

Account Title            Debits       Credits

Cash                        2,500

Service Revenue

Account Title             Debits       Credits

Cash                                           70,000

Accounts Receivable                30,000

Balance                    100,000

Totals                       100,000  100,000

Salaries Expense

Account Title             Debits       Credits

Cash                         41,000

Salaries payable        1,000

Balance                                       42,000

Totals                       42,000      42,000

Miscellaneous Expense

Account Title             Debits       Credits

Cash                         24,000

Depreciation Expense

Account Title             Debits       Credits

Accumulated depr    2,000

Unadjusted Trial Balance as of December 31, 2018:

Account Title             Debits       Credits

Cash                        $45,800

Accounts receivable 17,700

Equipment                35,000

Accumulated depreciation        $6,000

Common stock                          50,500

Retained earnings                       9,500

Dividends                  2,500

Service Revenue                     100,000

Salaries expense     41,000

Miscellaneous exp. 24,000

Totals                   $166,000 $166,000

Adjusted Trial Balance as of December 31, 2018:

Account Title             Debits       Credits

Cash                        $45,800

Accounts receivable 17,700

Equipment                35,000

Accumulated depreciation        $8,000

Salaries payable                           1,000

Common stock                          50,500

Retained earnings                       9,500

Dividends                  2,500

Service Revenue                     100,000

Salaries expense    42,000

Miscellaneous exp. 24,000

Depreciation exp.     2,000

Totals                   $169,000 $169,000

Income Statement for the year ended December 31, 2018:

Service Revenue                       100,000

Salaries expense    42,000

Miscellaneous exp. 24,000

Depreciation exp.     2,000       68,000

Net Income                                32,000

Retained earnings 1/1/2018        9,500

Dividends                                    2,500

Retained earnings 12/31/2018 39,000    

Balance Sheet as of December 31, 2018:

Assets

Cash                                      $45,800

Accounts receivable                17,700

Equipment                35,000

Acc. depreciation       8,000  27,000

Total assets                         $90,500

Liabilities + Equity:

Salaries payable                           1,000

Common stock                          50,500

Retained earnings                     39,000

Total liabilities + equity           $90,500

Post Closing Trial Balance

Account Title               Debits       Credits

Cash                          $45,800

Accounts receivable    17,700

Equipment                  35,000

Acc. depreciation                        $8,000

Salaries payable                            1,000

Common stock                          50,500

Retained earnings                     39,000

Totals                     $98,500   $98,500

Explanation:

a) Data and Calculations:

Trial Balance as of January 1, 2018:

Account Title             Debits       Credits

Cash                          30,000

Accounts receivable 15,000

Equipment                20,000

Accumulated depreciation        $6,000

Salaries payable        9,000

Common stock                          40,500

Retained earnings                       9,500

Total                        65,000      65,000

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