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

Account Title	Debits		Credits
Cash	32,600
Accounts receivable	11,500
Equipment	18,000
Accumulated depreciation			5,400
Salaries payable			6,750
Common stock			42,500
Retained earnings			7,450
Total	62,100		62,100

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

1. Service revenue, $108,000, of which $32,400 was on account and the balance was received in cash.
2. Collected on accounts receivable, $22,900.
3. Issued shares of common stock in exchange for $9,000 in cash.
4. Paid salaries, $39,250 (of which $6,750 was for salaries payable at the end of the prior year).
5. Paid miscellaneous expense for various items, $21,200.
6. Purchased equipment for $11,500 in cash.
7. Paid $2,575 in cash dividends to shareholders.

1. Accrued salaries at year-end amounted to $785.
2. Depreciation for the year on the equipment is $1,800.

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. Prepare an income statement for 2021.

	KARLIN COMPANY Income Statement For the Year Ended December 31, 2021 0 $0

Prepare a balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.

	KARLIN COMPANY Balance Sheet December 31, 2021 Assets 0 0 Liabilities and Shareholders' Equity 0 0 $0

Prepare a post-closing trial balance

	KARLIN COMPANY Post-Closing Trial Balance Account Title Debits Credits Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Service revenue Salaries expense Miscellaneous expenses Depreciation expense Totals $0 $

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