The general ledger of the Karlin Company, a consulting company,at January 1, 2021, contained the following account balances:
| Account Title | Debits | | Credits | |
| Cash | 28,700 | | | |
| Accounts receivable | 18,000 | | | |
| Equipment | 31,000 | | | |
| Accumulated depreciation | | | 9,300 | |
| Salaries payable | | | 10,000 | |
| Common stock | | | 49,000 | |
| Retained earnings | | | 9,400 | |
| Total | 77,700 | | 77,700 | |
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The following is a summary of the transactions for the year:
- Service revenue, $134,000, of which $40,200 was on account andthe balance was received in cash.
- Collected on accounts receivable, $26,800.
- Issued shares of common stock in exchange for $16,000 incash.
- Paid salaries, $49,000 (of which $10,000 was for salariespayable at the end of the prior year).
- Paid miscellaneous expense for various items, $26,400.
- Purchased equipment for $18,500 in cash.
- Paid $3,250 in cash dividends to shareholders.
- Accrued salaries at year-end amounted to $980.
- Depreciation for the year on the equipment is $3,100.
Required:
Post the transactions, adjusting and closing entries into theappropriate t-accounts.
