Question & Answer: The following information applies to the questions displayed below] The general ledger of the Karlin Company, a consulting company, at January…..

The following information applies to the questions displayed below] The general ledger of the Karlin Company, a consulting company, at January 1, 2016, contained the following account balances: Account Title Debits Credits 30,500 15,000 Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings 25,000 7500 8,500 46,000 8,500 Total 70,500 70,500 The following is a summary of the transactions for the year a. Sales of services, $122,000, of which $36,600 was on credit b. Collected on accounts receivable, $25,000. c. Issued shares of common stock in exchange for $13000 in cash. d. Paid salaries, $44,500 (of which $8,500 was for salaries payable) e. Paid miscellaneous expenses, $24,000. f. Purchased equipment for $15,500 in cash. g. Paid $2,950 in cash dividends to shareholders 1. Accrued salaries at year-end amounted to $890 2. Depreciation for the year on the equipment is $2.500