Question

Problem 2-6 (Algo) Accounting cycle [LO2-3, 2-4, 2-5, 2-6, 2-7, 2-8]

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

   

Account Title	Debits		Credits
Cash	29,900
Accounts receivable	16,000
Equipment	27,000
Accumulated depreciation			8,100
Salaries payable			9,000
Common stock			47,000
Retained earnings			8,800
Total	72,900		72,900

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

1. Service revenue, $126,000, of which $37,800 was on account and the balance was received in cash.
2. Collected on accounts receivable, $25,600.
3. Issued shares of common stock in exchange for $14,000 in cash.
4. Paid salaries, $46,000 (of which $9,000 was for salaries payable at the end of the prior year).
5. Paid miscellaneous expense for various items, $24,800.
6. Purchased equipment for $16,500 in cash.
7. Paid $3,050 in cash dividends to shareholders.

1. Accrued salaries at year-end amounted to $920.
2. Depreciation for the year on the equipment is $2,700.

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.

Below are my answers I have submitted. Green Color/ Check mark verifies the correctiveness of the answer. (All have Green Checkmarks. There is still an answer missing and I cannot figure out what it is.

** Most Likely the last part, but I thought protocol on the Post-Closing Trial Balance, you aren’t supposed to record Expenses and Service Revenue??? Please Help.

Question map A guide to all of the questions in this assignment is provided below. To quickly navigate to a specific question, select it from the list below. Page 1 of 1 1 4 5 Part 1 of 3 Answered Answered Answered Answered Answered Part 2 of 3 Part 3 of 3 Answered Answered Answered Incomplete 88% complete 8/9 questions answered

Req 2, 5 , 8

Req 3

Req 4

Req 6

Req 7A

7B

Req 9

Answer 1

Everything is correct except Part 3, which says "to post the adjusting entries to the T-Accounts" and the same is not put in the answer but the adjusting journal entries were put in place of T-Accounts. The Part 3 showing T-Accounts are:

T-Accounts:
DEBIT	AMOUNT $	CREDIT	AMOUNT $
Cash
OB	29900	d	46000
a	88200	e	24800
b	25600	f	16500
c	14000	g	3050
		CB	67350
Accounts Recievable
OB	16000	b	25600
a	37800	CB	28200
Equipment
OB	27000	CB	43500
f	16500
Acc Depreciation
CB	10800	OB	8100
		i	2700
Salaries payable
d	9000	OB	9000
CB	920	h	920
Common Stock
CB	61000	OB	47000
		c	14000
Retained earnings
k	24800	OB	8800
k	2700	j	126000
k	37920
k	3050
CB	66330
Service Revenue
j	126000	a	126000
Salaries expense
d	37000	k	37920
h	920
Miscel. Expense
e	24800	k	24800
Dividends
g	3050	k	3050
Depreciation
i	2700	k	2700