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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, 2024, contained the following account balances: 1 Provided services, $120,000, of which $36,000 was on account and the balance was received in cash. 2 Collected on accounts receivable, $24,700. 3 Issued shares of common stock in exchange for $12,500 in cash. 4 Paid salaries, $43,750 (of which $8,250 was for salaries payable at the end of the prior year). 5 Paid miscellaneous expense for various items, $23,600. 6 Purchased equipment for $14,500 in cash. 7 Paid $2,900 in cash dividends to shareholders. Additional information: h. Accrued salaries at year-end amounted to $875. i. Depreciation for the year on the equipment is $2,400. Required: 1 to 3. Prepare a general journal entry for each of the summary transactions listed. Record beginning balances in the T-accounts (on the T-accounts tab). Post the journal entries to the T-accounts. 4. Using the T-account balances, prepare an unadjusted trial balance. 5. Prepare adjusting journal entries using the additional information provided. Post to the T-accounts (on the T-accounts tab). 6. Using the adjusted T-account balances, prepare an adjusted trial balance. 7-a. Prepare an income statement for 2024. 7-b. Prepare a balance sheet as of December 31, 2024. 8. Prepare closing entries, and then post to the T-accounts (on the T-accounts tab). 9. Prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Using the T-account balances, prepare an unadjusted trial balance. Prepare adjusting journal entries using the additional information provided. Post to the T-accounts (on the T-accounts tab). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the adjusting journal entry for accrued salaries at year-end that amounted to $875. Note: Enter debits before credits. Journal entry worksheet Record the adjusting journal entry for annual depreciation of $2,400. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Using the adjusted T-account balances, prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. Prepare an income statement for 2024. Complete this question by entering your answers in the tabs below. Prepare a balance sheet as of December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign. Prepare closing entries, and then post to the T-accounts (on the T-accounts tab). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 1 Record the entry to close the revenue accounts using the retained earnings account. 2 Record the entry to close the expense accounts using the retained earnings account. arnings 3 Record the entry to close the dividends account. Credit Note : O= journal entry has been entered Post the transactions, adjusting and closing entries into the appropriate T-accounts. Note: Enter the letter of the transaction in the column next to the amount. Prepare a post-closing trial balance

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