Prepare an adjusted and unadjusted trial balance The general ledger of the Karli
ID: 2330700 • Letter: P
Question
Prepare an adjusted and unadjusted trial balance
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the following account balances Account Title Cash Accounts receivable Equipment Accumulated depreciation Salaries payable Common stock Retained earnings Total Debits Credits 29,600 16,500 28,000 8,400 9,250 47,500 8,950 74,100 74,100 The following is a summary of the transactions for the year: a. Sales of services, $128,000, of which $38,400 was on credit. b. Collected on accounts receivable, $25,900 c. Issued shares of common stock in exchange for $14,500 in cash d. Paid salaries, $46,750 (of which $9,250 was for salaries payable) e. Paid miscellaneous expenses, $25,200 f. Purchased equipment for $17,000 in cash g. Paid $3,100 in cash dividends to shareholders 1. Accrued salaries at year-end amounted to $935 2. Depreciation for the year on the equipment is $2,800Explanation / Answer
1 Unadjusted trial balance Debit Credit Cash 67550 Accounts receivable 29000 Equipment 45000 Accumulated depreciation 8400 Salaries payable 0 Common stock 62000 Retained earnings 5850 Service revenue 128000 Salaries expense 37500 Miscellaneous expense 25200 Totals 204250 204250 2 Adjusted trial balance Debit Credit Cash 67550 Accounts receivable 29000 Equipment 45000 Accumulated depreciation 11200 Salaries payable 935 Common stock 62000 Retained earnings 5850 Service revenue 128000 Salaries expense 38435 Depreciation expense 2800 Miscellaneous expense 25200 Totals 207985 207985