The general ledger of the Karlin Company, a consulting company, at January 1, 2016, contained the following account balances:
| Account Title |
Debits |
Credits |
| Cash |
31,700 |
|
| Accounts receivable |
13,000 |
|
| Equipment |
21,000 |
|
| Accumulated depreciation |
|
6,300 |
| Salaries payable |
|
7,500 |
| Common stock |
|
44,000 |
| Retained earnings |
|
7,900 |
|
|
|
| Total |
65,700 |
65,700 |
|
|
The following is a summary of the transactions for the year:
a. Sales of services, $114,000, of which $34,200 was on credit.
b. Collected on accounts receivable, $23,800.
c. Issued shares of common stock in exchange for $11,000 in cash.
d. Paid salaries, $41,500 (of which $7,500 was for salaries payable).
e. Paid miscellaneous expenses, $22,400.
f. Purchased equipment for $13,000 in cash.
g. Paid $2,750 in cash dividends to shareholders.
1. Accrued salaries at year-end amounted to $830.
2. Depreciation for the year on the equipment is $2,100.
Post the transactions, adjusting and closing entries into the appropriate t-accounts. (Enter the letter of the transaction in the column next to the amount.)