The general ledger of the Karlin Company, a consulting company, at January 1, 20

Question

The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances:

   

The following is a summary of the transactions for the year:

Sales of services, $120,000, of which $36,000 was on credit.

Collected on accounts receivable, $24,700.

Issued shares of common stock in exchange for $12,500 in cash.

Paid salaries, $43,750 (of which $8,250 was for salaries payable).

Paid miscellaneous expenses, $23,600.

Purchased equipment for $14,500 in cash.

Paid $2,900 in cash dividends to shareholders.

Accrued salaries at year-end amounted to $875.

Depreciation for the year on the equipment is $2,400.

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.

Account Title Debits Credits Cash 30,800 Accounts receivable 14,500 Equipment 24,000 Accumulated depreciation 7,200 Salaries payable 8,250 Common stock 45,500 Retained earnings 8,350 Total 69,300 69,300

Explanation / Answer

Solution:-

2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed:-

= 120,000 - 36,000

= $84,000

= 43,750 - 8,250

= $35,500

= $8,250 +  $35,500

= $43,750

= $36,000 + $84,000 +  $24,700 + $12,500 + $8,250 + $35,500 + $23,600 + $14,500 + $2,900 +  $875 + $2,400

= $2,45,225

=1,20,000 +  $24,700 + $12,500 + 43,750 + $23,600 + $14,500 + $2,900 +  $875 + $2,400

=  $2,45,225

3. Post the transactions, adjusting and closing entries into the appropriate t-accounts:-

= 120,000 - 36,000

=$84,000

=  $43,750 +  $23,600

= $ 67,250

=$ 67,250 + $2,900 + $8,250 + $35,500 + $23,600 + 14,500

= $1,52,000

= $30,800 + $84,000 + $24,700 +  $12,500

= $1,52,000

=8,250 + 875

=$9,125

= 8,250 + 875

= $9,125

4. Prepare an unadjusted trial balance for  Karlin Company:-

= $30,800 + $14,500 + $24,000

= $69,300

= $7,200 + $8,250 + $45,500 + $8,350

= $69,300

Note:- As per the chegg rule i have time limit to complete the answer .that's why iam answered for all questions due to less time .if need that questions also please upload it as a another question because i know answer .

THANK YOU .

no Particulars L/F Debit Credit 1. accounts receivable Dr $36,000 to sales $120,000 Cash = account receivable - sales

= 120,000 - 36,000

= $84,000

(being cash sales and receivable accountaed) 2. To accounts receivable Dr $24,700 Cash $24,700 (Being account receivables collected accounted) 3. To common stock Dr $12,500 Cash $12,500 ( Being issue of common stock against cash accounted) 4. Salary payable Dr $8,250 Salary Dr

= 43,750 - 8,250

= $35,500

To cash

= $8,250 +  $35,500

= $43,750

(being salary paid in cash accounted) 5. Miscellaneous expenses Dr $23,600 Cash $23,600 ( Being miscellaneous expenses paid in cash ) 6. Equipment Dr $14,500 Cash $14,500 ( Being purchase of equipment for cash accounted ) 7. Dividend Dr $2,900 Cash $2,900 ( Being dividend paid in cash accounted) 8. Salary Dr $875 To salary payable $875 ( Being accrued salary for the year accounted) 9. Depreciation Dr $2,400 To equipment $2,400 (Being depreciation for the year accounted ) Total

= $36,000 + $84,000 +  $24,700 + $12,500 + $8,250 + $35,500 + $23,600 + $14,500 + $2,900 +  $875 + $2,400

= $2,45,225

=1,20,000 +  $24,700 + $12,500 + 43,750 + $23,600 + $14,500 + $2,900 +  $875 + $2,400

=  $2,45,225

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