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:

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

 

Transcribed Image Text:

Prepare a post-closing trial balance. KARLIN COMPANY Post-Closing Trial Balance Debits Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Service revenue Salaries expense Miscellaneous expenses Depreciation expense Totals $ 68,550 33,000 52,500 Credits $ 13,200 1,010 67,000 72,840 0 0 0 0 $ 154,050 $ 154,050 Prepare a post-closing trial balance. KARLIN COMPANY Post-Closing Trial Balance Debits Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Service revenue Salaries expense Miscellaneous expenses Depreciation expense Totals $ 68,550 33,000 52,500 Credits $ 13,200 1,010 67,000 72,840 0 0 0 0 $ 154,050 $ 154,050

Answer rating: 100% (QA)

Karlin Company journal Entries Cash Accounts receivable Service revenue Cash Accounts rec... View the full answer