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In: Accounting

The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the...

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

The following is a summary of the transactions for the year:

  1. Service revenue, $134,000, of which $40,200 was on account and the balance was received in cash.
  2. Collected on accounts receivable, $26,800.
  3. Issued shares of common stock in exchange for $16,000 in cash.
  4. Paid salaries, $49,000 (of which $10,000 was for salaries payable at the end of the prior year).
  5. Paid miscellaneous expense for various items, $26,400.
  6. Purchased equipment for $18,500 in cash.
  7. Paid $3,250 in cash dividends to shareholders.
  1. Accrued salaries at year-end amounted to $980.
  2. Depreciation for the year on the equipment is $3,100.


Required:

2., 5, & 8. Prepare the summary, adjusting and closing entries for each of the transactions listed.

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