The general ledger of the Karlin Company, a consulting company, at January 1, 2013, 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:
| a. |
Sales of services, $100,000, of which $30,000 was on credit. |
| b. |
Collected on accounts receivable, $27,300. |
| c. |
Issued shares of common stock in exchange for $10,000 in cash. |
| d. |
Paid salaries, $50,000 (of which $9,000 was for salaries payable). |
| e. |
Paid miscellaneous expenses, $24,000. |
| f. |
Purchased equipment for $15,000 in cash. |
| g. |
Paid $2,500 in cash dividends to shareholders. |
| 1. |
Accrued salaries at year-end amounted to $1,000. |
| 2. |
Depreciation for the year on the equipment is $2,000. |
| 5. |
Prepare an unadjusted trial balance. |