Texts: 5 Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total
Debits Credits 28,788 18,000 31,000
10,000 49,808 9,488 77,700 77,780
The following is a summary of the transactions for the year:
a. Sales of services, $134,000, of which $40,200 was on credit.
b. Collected on accounts receivable, $26,800.
c. Issued shares of common stock in exchange for $16,000 in cash.
d. Paid miscellaneous expenses, $26,400.
e. Purchased equipment for $18,500 in cash.
f. Paid $3,250 in cash dividends to shareholders.
g. Accrued salaries at year-end amounted to $980.
h. Depreciation for the year on the equipment is $3,100.
Req 2, 5, and 8: Prepare the summary, adjusting and closing entries for each of the transactions listed.
Req 3: Post the transactions, adjusting and closing entries into the appropriate accounts.
Req 4: Prepare an unadjusted trial balance.
Req 6: Prepare an adjusted trial balance.
Req 7-a: Prepare an income statement for 2018.
Req 7-b: Prepare a balance sheet as of December 31, 2018.
Req 9: Prepare a post-closing trial balance.
KARLIN COMPANY
Post-Closing Trial Balance
Account Title Debits Credits
Cash 56,815
Accounts receivable 31,400
Equipment 49,500
Accumulated depreciation 12,400
Salaries payable 0
Common stock 5,000
Retained earnings 70,670
Service revenue 134,000
Salaries expense 39,980
Miscellaneous expenses 26,400
Depreciation expense 3,100
Totals 218,530 283,050
Req 7-b: Prepare a balance sheet as of December 31, 2018.
