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The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained...

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Accounting

The general ledger of the Karlin Company, a consulting company, at January 1, 2018, 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:

a. Sales of services, $126,000, of which $37,800 was on credit.

b. Collected on accounts receivable, $25,600.

c. Issued shares of common stock in exchange for $14,000 in cash.

d. Paid salaries, $46,000 (of which $9,000 was for salaries payable).

e. Paid miscellaneous expenses, $24,800.

f. Purchased equipment for $16,500 in cash.

g. 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:

6. Prepare an adjusted trial balance. 7-a. Prepare an income statement for 2018. 7-b. Prepare a balance sheet as of December 31, 2018. 9. Prepare a post-closing trial balance.

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