|
The general ledger of the Karlin Company, a consulting company, at January 1, 2016, contained the following account balances:
|
| Account Title |
Debits |
Credits |
| Cash |
28,400 |
|
| Accounts receivable |
18,500 |
|
| Equipment |
32,000 |
|
| Accumulated depreciation |
|
9,600 |
| Salaries payable |
|
10,250 |
| Common stock |
|
49,500 |
| Retained earnings |
|
9,550 |
| |
| Total |
78,900 |
78,900 |
The following is a summary of the transactions for the year:
| a. |
Sales of services, $136,000, of which $40,800 was on credit. |
| b. |
Collected on accounts receivable, $27,100. |
| c. |
Issued shares of common stock in exchange for $16,500 in cash. |
| d. |
Paid salaries, $49,750 (of which $10,250 was for salaries payable). |
| e. |
Paid miscellaneous expenses, $26,800. |
| f. |
Purchased equipment for $19,000 in cash. |
| g. |
Paid $3,300 in cash dividends to shareholders. |
| 1. |
Accrued salaries at year-end amounted to $995. |
| 2. |
Depreciation for the year on the equipment is $3,200. |
Required:
Prepare the summary, adjusting and closing entries for each of the transactions listed. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)