Make adjusting and closing entries into t-accounts

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Reference no: EM131810461

The general ledger of the Karlin Company, a consulting company, at January 1, 2016, contained the following account balances:

Account Title	Debits	Credits
Cash	31,700
Accounts receivable	13,000
Equipment	21,000
Accumulated depreciation		6,300
Salaries payable		7,500
Common stock		44,000
Retained earnings		7,900

Total	65,700	65,700

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

a. Sales of services, $114,000, of which $34,200 was on credit.

b. Collected on accounts receivable, $23,800.

c. Issued shares of common stock in exchange for $11,000 in cash.

d. Paid salaries, $41,500 (of which $7,500 was for salaries payable).

e. Paid miscellaneous expenses, $22,400.

f. Purchased equipment for $13,000 in cash.

g. Paid $2,750 in cash dividends to shareholders.

1. Accrued salaries at year-end amounted to $830.

2. Depreciation for the year on the equipment is $2,100.

Post the transactions, adjusting and closing entries into the appropriate t-accounts. (Enter the letter of the transaction in the column next to the amount.)

Reference no: EM131810461

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