USA: +1 (725) 712-1730
USA: +1 (725) 712-1730

Question & Answer: This is the complete question. Please help as soon as possible. It's due soon!…..

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: Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Debits 31,700 3,000 21,000 6,300 7,500 44,000 7900 stock Retained earnings Total 65,70065,700 The following is a summary of the transactions for the year: a. Sales of services, $114,000, of which $34,200 was on credit. b. Collected on accounts receivable, $23,800 c. Issued shares of common stock in exchange for $11,000 in cash. d. Paid salaries, $41,500 (of which $7,500 was for salaries payable). e. Paid miscellaneous expenses, $22,400. for $13,000 in cash. g. Paid $2,750 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $830. 2. Depreciation for the year on the equipment is $2,100.
media%2F6b8%2F6b8d41e9-6775-4c9b-953f-83
media%2F6c7%2F6c740dc5-6c59-4fd2-8517-3b
media%2Fe48%2Fe48870ec-26c1-4982-9460-4d
media%2Fa3d%2Fa3d52187-2a85-416a-9560-55
media%2F2c6%2F2c675753-d3b9-4415-b063-48
media%2F791%2F7912705a-cdd0-46d1-bc54-3e
media%2F8d1%2F8d18f918-7cae-44db-bfc5-ad
This is the complete question. Please help as soon as possible. It’s due soon!

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: Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Debits 31,700 3,000 21,000 6,300 7,500 44,000 7900 stock Retained earnings Total 65,70065,700 The following is a summary of the transactions for the year: a. Sales of services, $114,000, of which $34,200 was on credit. b. Collected on accounts receivable, $23,800 c. Issued shares of common stock in exchange for $11,000 in cash. d. Paid salaries, $41,500 (of which $7,500 was for salaries payable). e. Paid miscellaneous expenses, $22,400. for $13,000 in cash. g. Paid $2,750 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $830. 2. Depreciation for the year on the equipment is $2,100.

Expert Answer

 

Journal entries are shown below.

KARLIN COMPANY
Sl.No. Event General Journal Debit Credit
1 a Cash 79800
Accounts receivable 34200
Service revenue 114000
(Service revenue accounted)
2 b Cash 23800
Accounts receivable 23800
(Received on account)
3 c Cash 11000
Common stock 11000
(Issue of common stock)
4 d Salaries payable 7500
Salaries expense 34000
Cash 41500
(Payment of salaries)
5 e Miscellaneous expenses 22400
Cash 22400
(Payment of miscellaneous expenses)
6 f Equipment 13000
Cash 13000
(Purchase of equipment)
7 g Dividend 2750
Cash 2750
(Payment of cash dividend)
8 1 Salaries expense 830
Salaries payable 830
(Salaries accrued)
9 2 Depreciation expense 2100
Accumulated depreciation 2100
(Depreciation on equipment accounted)

Closing entries are shown below.

KARLIN COMPANY
Sl.No. Event General Journal Debit Credit
1 Service Revenue 114000
Income summary 114000
(Closing of service revenue acount)
2 Income summary 34830
Saalries expense 34830
(Closing of salaries expense account)
3 Income summary 22400
Miscellaneous expense 22400
(Miscellaneous expense account closed)
4 Income summary 2100
Depreciation expense 2100
(Depreciation expense closed)

Unadjusted trial balance

KARLIN COMPANY
Unadjusted Trial Balance
Acount Debit Credit
Cash 66650
Accounts Receivable 23400
Equipment 34000
Accumulated Depreciation 6300
Salaries payable 0
Common stock 55000
Retained earnings 5150
Service revenue 114000
Salaries expense 34000
Miscellaneous expense 22400
Depreciation expense
T o t al 180450 180450
Adjusted trial balance

KARLIN COMPANY
Adjusted trial bal.
Acount Debit Credit
Cash 66650
Accounts Receivable 23400
Equipment 34000
Accumulated Depreciation 8400
Salaries payable 830
Common stock 55000
Retained earnings 5150
Service revenue 114000
Salaries expense 34830
Miscellaneous expense 22400
Depreciation expense 2100
T o t al 183380 183380

Post closing Trial Balance

KARLIN COMPANY
Post closing trial balance
Account Debit Credit
Cash 66650
Accounts Receivable 23400
Equipment 34000
Accumulated Depreciation 0 8400
Salaries payable 0 830
Common stock 0 55000
Retained earnings 0 59820
Service revenue
Salaries expense
Miscellaneous expense
Depreciation expense
T o t al 124050 124050
Ledger accounts are shown below

Cash Accounts Receivable Equipment
Debit Credit Debit Credit Debit Credit
Beg. Balance 31700 Beg. Balance 13000 Beg. Balance 21000
a 79800 7500 d a. 34200 23800 b f 13000
b. 23800 34000 d End. Bal. 23400 End. Bal. 34000
c. 11000 22400 e 47200 47200 34000 34000
13000 f End. Bal. 23400 End Bal 34000
2750 g
End. Bal. 66650 Salaries payable Common stock
146300 146300 Debit Credit Debit Credit
End bal 66650 Beg. Balance 7500 Beg. Balance 44000
Accumulated depreciation d 7500 830 1 11000 c
Debit Credit End.bal. 830 End Bal. 55000
Beg. Balance 6300 8330 8330 55000 55000
2100 End bal 830 End Bal. 55000
End Bal. 8400
8400 8400 Service revenue Salaries expense
End bal 8400 Debit Credit Debit Credit
Retained earnings 79800 a d 34000
Debit Credit 34200 a 1 830
Beg. Balance 7900 Income statement 114000 Income statement 34830
g 2750 114000 114000 34830 34830
Inc.Summary 54670 End bal 114000 End bal 34830
End.Bal. 59820
62570 62570 Dividend Payable Depreciation expense
Debit Credit Debit Credit
Miscellaneous expense g 2750 2 2100
Debit Credit g 2750
e 22400 2750 2750
Inc.Statement 22400
22400 22400
Income Summary
Debit Credit
Service revenue 114000
Salaries expense 34830
Miscellaneous exp. 22400
Depreciation 2100
Retained earnings 54670
114000 114000
Still stressed from student homework?
Get quality assistance from academic writers!
Order now