Hey guys can somebody help with this one? fantastic job so far! Problem 2-6 Acco
ID: 2350552 • Letter: H
Question
Hey guys can somebody help with this one? fantastic job so far! Problem 2-6 Accounting cycle [LO2-2, 2-3, 2-4, 2-5, 2-6, 2-7] The general ledger of the Karlin Company, a consulting company, at January 1, 2013, contained the following account balances: Account Title Debits Credits Cash 30,000 Accounts receivable 15,000 Equipment 20,000 Accumulated depreciation 6,000 Salaries payable 9,000 Common stock 40,500 Retained earnings 9,500 ________________________________________ ________________________________________ Total 65,000 65,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ The following is a summary of the transactions for the year: a. Sales of services, $100,000, of which $30,000 was on credit. b. Collected on accounts receivable, $27,300. c. Issued shares of common stock in exchange for $10,000 in cash. d. Paid salaries, $50,000 (of which $9,000 was for salaries payable). e. Paid miscellaneous expenses, $24,000. f. Purchased equipment for $15,000 in cash. g. Paid $2,500 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $1,000. 2. Depreciation for the year on the equipment is $2,000. Required: 1. Prepare a general journal entry for each of the summary transactions listed above.Explanation / Answer
a. Sales of services, $100,000, of which $30,000 was on credit. Accounts receivable (Dr.) 30000 Cash (Dr.) 70000 Service revenue (Cr.) 100000 b. Collected on accounts receivable, $27,300. Cash (Dr.) 27300 Accounts receivable (Cr.) 27300 c. Issued shares of common stock in exchange for $10,000 in cash. (Assuming no-par common stock!) Cash (Dr.) 10000 Common stock (Cr.) 10000 d. Paid salaries, $50,000 (of which $9,000 was for salaries payable). Salary expense (Dr.) 41000 Salaries payable (Dr.) 9000 Cash (Cr.) 50000 e. Paid miscellaneous expenses, $24,000. Miscellaneous expense (Dr.) 24000 Cash (Cr.) 24000 f. Purchased equipment for $15,000 in cash. Equipment (Dr.) 15000 Cash (Cr.) 15000 g. Paid $2,500 in cash dividends to shareholders. (Assuming they were paid on the day declared!) Cash dividends (Dr.) 2500 Cash (Cr.) 2500 1. Accrued salaries at year-end amounted to $1,000. Salaries expense (Dr.) 1000 Salaries payable (Cr.) 1000 2. Depreciation for the year on the equipment is $2,000. Depreciation expense - equipment (Dr.) 2000 Accumulated Depreciation - equipment (Cr.) 2000 Hope this helps!