Question: I have the below question in an Intermediate accounting class. I have completed the whole question, but when trying to submit, it says the question

I have the below question in an Intermediate accounting class.  I have completed the whole question, but when trying to submit, it says the question is incomplete.  I can provide my work if needed.

The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: 

Account TitleDebits
Credits
Cash31,700



Accounts receivable13,000


Equipment21,000


Accumulated depreciation

6300
Salaries payable

7500
Common stock

44,000
Retained earnings

7900
Total65,700
65,700

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

  1. Service revenue, $114,000, of which $34,200 was on account and the balance was received in cash.
  2. Collected on accounts receivable, $23,800.
  3. Issued shares of common stock in exchange for $11,000 in cash.
  4. Paid salaries, $41,500 (of which $7,500 was for salaries payable at the end of the prior year).
  5. Paid miscellaneous expense for various items, $22,400.
  6. Purchased equipment for $13,000 in cash.
  7. Paid $2,750 in cash dividends to shareholders.
  8. Accrued salaries at year-end amounted to $830.
  9. Depreciation for the year on the equipment is $2,100.

 

Required:

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

3. Post the transactions, adjusting and closing entries into the appropriate t-accounts.

4. unadjusted trial balance.

6. adjusted trial balance.

7-a.  income statement for 2021.

7-b.  balance sheet as of December 31, 2021.

9.  post-closing trial balance.

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Solution To start lets work on the summary adjusting and closing entries for each transaction 1 Service revenue Summary Entry Service Revenue 114000 Adjusting Entry Service Revenue 34200 to recognize ... View full answer

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