The general ledger of the Karlin Company, a consulting company, at January 1, 20
ID: 2378411 • Letter: T
Question
The general ledger of the Karlin Company, a consulting company, at January 1, 2013, 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:
a.
Sales of services, $100,000, of which $30,000 was on credit.
b.
Collected on accounts receivable, $27,300.
c.
Issued shares of common stock in exchange for $10,000 in cash.
d.
Paid salaries, $50,000 (of which $9,000 was for salaries payable).
e.
Paid miscellaneous expenses, $24,000.
f.
Purchased equipment for $15,000 in cash.
g.
Paid $2,500 in cash dividends to shareholders.
1.
Accrued salaries at year-end amounted to $1,000.
2.
Depreciation for the year on the equipment is $2,000.
Required:
1.
Prepare a general journal entry for each of the summary transactions listed above.
2.
Prepare the adjusting journal entries.
3.
Prepare the closing entries.
4.
Post the opening balances, transactions, adjusting and closing entries into the appropriate t-accounts.
5.
Prepare an unadjusted trial balance.
6.
Prepare an adjusted trial balance.
7.
Prepare an income statement for 2013.
8.
Prepare a balance sheet as of December 31, 2013.
9.
Prepare a post-closing trial balance.
The general ledger of the Karlin Company, a consulting company, at January 1, 2013, contained the following account balances:
Explanation / Answer
1.
a. Accounts receivable Dr. 30000
Sales Cr. 30000
b. Cash Dr. 27300
Accounts receivable Cr. 27300
c. cash Dr. 10000
Common stock cr. 10000
d. salary exp. Dr. 50000
Cash Cr. 50000
e. miscellaneous exp. Dr. 24000
Cash Cr. 24000
f. Equipment Dr. 15000
Cash Cr. 15000
G. Dividend Dr. 2500
Cash Cr. 2500
1. Salary Exp. Dr. 1000
Accrued salary Cr. 1000
2. Depreciation Dr. 2000
Equipment Cr. 2000
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