The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Debits Credits Cash 28,100 Accounts receivable 19,000 Equipment 33,000 Accumulated depreciation 9,900 Salaries payable 10,500 Common stock 50,000 Retained earnings 9,700 Total 80,100 80,100 The following is a summary of the transactions for the year: Service revenue, $138,000, of

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


Account TitleDebits
Credits
Cash28,100


Accounts receivable19,000


Equipment33,000


Accumulated depreciation

9,900
Salaries payable

10,500
Common stock

50,000
Retained earnings

9,700
Total80,100
80,100


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

  1. Service revenue, $138,000, of which $41,400 was on account and the balance was received in cash.
  2. Collected on accounts receivable, $27,400.
  3. Issued shares of common stock in exchange for $17,000 in cash.
  4. Paid salaries, $50,500 (of which $10,500 was for salaries payable at the end of the prior year).
  5. Paid miscellaneous expense for various items, $27,200.
  6. Purchased equipment for $19,500 in cash.
  7. Paid $3,350 in cash dividends to shareholders.
  8. Accrued salaries at year-end amounted to $1,010.
  9. Depreciation for the year on the equipment is $3,300.


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. Prepare an unadjusted trial balance.
6. Prepare an adjusted trial balance.
7-a. Prepare an income statement for 2021.
7-b. Prepare a balance sheet as of December 31, 2021.
9. Prepare a post-closing trial balance.

I have everything correct except number 9. Would someone be able to tell me what's wrong here? It says everything is correct EXCEPT for the revenue and expense accounts

 

Related Book For  answer-question

Intermediate Accounting

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

ISBN: 978-1260481952