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The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Debits Credits 27,800 19,500 34,000 Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings 10,200 10,750 50,500 9,850 Total 81,300 81,300 The following is a summary of the transactions for the year: a. Service revenue, $140,000, of which $42,000 was on account and the balance was received in cash. b. Collected on accounts receivable, $27,700. c. Issued shares of common stock in exchange for $17,500 in cash. d. Paid salaries, $51,250 (of which $10,750 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $27,600. f. Purchased equipment for $20,000 in cash. g. Paid $3,400 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $1,025. 2. Depreciation for the year on the equipment is $3,400. KARLIN COMPANY Unadjusted Trial Balance Account Title Debits Credits Cash $ 68,750 Accounts receivable 33,800 Equipment 54,000 Accumulated depreciation $ 10,200 Salaries payable Common stock 68,000 Retained earnings 9,850 Dividends 3,400 Service revenue 140,000 Salaries expense 40,500 Miscellaneous expenses 27,600 Totals $ 228,050 $ 228,050 Prepare an adjusted trial balance. KARLIN COMPANY Adjusted Trial Balance Account Title Debits Credits Cash $ $ 68,750 Accounts receivable 33,800 Equipment 54,000 Accumulated depreciation 13,600 Salaries payable 1,025 Common stock 68,000 Retained earnings 73,925 Dividends Service revenue Salaries expense Miscellaneous expenses Depreciation expense Totals $ 156,550 $ 156,550

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