ACCT 2000 Lecture Notes - Lecture 19: Retained Earnings, Financial Statement, Income Statement
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The general ledger of the Karlin Company, aconsulting 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 | |
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Total | 65,000 | 65,000 |
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The following is a summary of the transactions for theyear:
a. | Sales of services, $100,000, of which $30,000was 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 wasfor 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 ofthe summary transactions listed above. |
2. | Prepare the adjusting journal entries. |
3. | Prepare the closing entries. | |||
4. | Post the opening balances, transactions,adjusting and closing entries into the appropriatet-accounts. |
5. | Prepare an unadjusted trial balance. |
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6. | Prepare an adjusted trial balance. |
7. | Prepare an income statement for 2013. |
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8. | Prepare a balance sheet as of December 31,2013. | ||
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9. | Prepare a post-closing trial balance. | ||
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