The general ledger of the Karlin Company, a consulting company, at January 1, 2024, 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:

1. Provided services, $100,000, of which $30,000 was on account and the balance was received in cash.
2. Collected on accounts receivable, $27,300.
3. Issued shares of common stock in exchange for $10,000 in cash.
4. Paid salaries, $50,000 (of which $9,000 was for salaries payable at the end of the prior year).
5. Paid miscellaneous expense for various items, $24,000.
6. Purchased equipment for $15,000 in cash.
7. Paid $2,500 in cash dividends to shareholders. Required:

1 to 3. Prepare a general journal entry for each of the summary transactions listed. Record beginning balances in the T-accounts (on the T-accounts tab). Post the journal entries to the T-accounts.

4. Using the T-account balances, prepare an unadjusted trial balance.

5. Prepare adjusting journal entries using the additional information provided. Post to the T-accounts (on the T-accounts tab).

6. Using the adjusted T-account balances, prepare an adjusted trial balance.

7-a. Prepare an income statement for 2024.

7-b. Prepare a balance sheet as of December 31, 2024.

8. Prepare closing entries, and then post to the T-accounts (on the T-accounts tab).

9. Prepare a post-closing trial balance.

Additional information:

1. Accrued salaries at year-end amounted to $1,000.
2. Depreciation for the year on the equipment is $2,000.

Journal entry worksheet

1. record the entry to close the revenue accounts using the retained earning accounts.
2. record the entry to close the expense accounts using the retained earning accounts.
3. record the entry to close the dividends account.