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4 years ago

The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:

Business

1 answer:

mote1985 [20]4 years ago

4 0

Answer:

Service revenue, $104,000, of which $31,200 was on account and the balance was received in cash.

Dr Cash 72,800

Dr Accounts receivable 31,200

Cr Service revenue 104,000

Collected on accounts receivable, $22,300.

Dr Cash 22,300

Cr Accounts receivable 22,300

Issued shares of common stock in exchange for $8,000 in cash.

Dr Cash 8,000

Cr Common stock 8,000

Paid salaries, $37,750 (of which $6,250 was for salaries payable at the end of the prior year).

Dr Wages expense 31,500

Dr Wages payable 6,250

Cr Cash 37,750

Paid miscellaneous expense for various items, $20,400.

Dr Miscellaneous expenses 20,400

Cr Cash 20,400

Purchased equipment for $10,500 in cash.

Dr Equipment 10,500

Cr Cash 10,500

Paid $2,475 in cash dividends to shareholders.

Dr Dividends 2,475

Cr Cash 2,475

Accrued salaries at year-end amounted to $755.

Dr Wages expense 755

Cr Wages payable 755

Depreciation for the year on the equipment is $1,600.

Dr Depreciation expense 1,600

Cr Accumulated depreciation 1,600

Dr Service revenue 104,000

Cr Income summary 104,000

Dr Income summary 54,255

Cr Wages expense 32,255

Cr Miscellaneous expenses 20,400

Cr Depreciation expense 1,600

Dr Income summary 49,745

Cr Retained earnings 49,745

Dr Retained earnings 2,475

Cr Dividends 2,475

Cash Accounts receivable

debit credit debit credit

33,200 10,500

72,800 31,200

22,300 22,300

8,000 19,400

37,750

20,400

10,500

2,475

65,175

Equipment Wages payable

debit credit debit credit

11,200 6,250

10,500 6,250

1,600 755

20,100 755

Common stock Retained earnings

debit credit debit credit

41,500 7,150

8,000 49,745

49,500 2,475

54,420

Service revenue Wages expense

debit credit debit credit

104,000 31,500

104,000 755

0 0 32,255

0 0

Miscellaneous expense Dividends

debit credit debit credit

20,400 2,475

20,400 2,475

0 0 0 0

Depreciation expense Income summary

debit credit debit credit

1,600 104,000

1,600 54,255

0 0 49,745

0 0

3 and 4) Karlin Company

Trial Balance Sheet

For the year ended December 31, 2021

Debit Credit

Cash $65,175

Accounts receivable $19,400

Equipment $20,100

Wages payable $755

Common stock $49,500

Retained earnings $7,150

Service revenue $104,000

Wages expense $32,255

Miscellaneous expense $20,400

Depreciation expense $1,600

Dividends $2,475

Totals $161,405 $161,405

5.a. Karlin Company

Income Statement

For the year ended December 31, 2021

Service revenue $104,000

Expenses:

Wages expense $32,255
Miscellaneous expense $20,400
Depreciation expense $1,600 ($54,255)

Net income $49,745

5.b. Karlin Company

Balance Sheet

For the year ended December 31, 2021

Assets:

Cash $65,175

Accounts receivable $19,400

Equipment $20,100

Total assets $104,675

Liabilities:

Wages payable $755

Total liabilities $755

Stockholders' equity

Common stock $49,500

Retained earnings $54,420

Total stockholders' equity $103,920

Total liabilities + equity $104,675

6) Karlin Company

post-closing Trial Balance Sheet

For the year ended December 31, 2021

Debit Credit

Cash $65,175

Accounts receivable $19,400

Equipment $20,100

Wages payable $755

Common stock $49,500

Retained earnings $54,420

Totals $104,675 $104,675

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Answer:

C. None of these would be considered a fixed cost.

Explanation:

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As in the case above,

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3 years ago

Clark’s Landscaping bills customers subject to terms 3/20, n/60.

Law Incorporation [45]

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4 years ago

Melvin Crane is 66 years old, and his wife, Matilda, is 65. They filed a joint income tax return for 2019, reporting an adjusted

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Answer:

Explanation:

the credit for the elderly is the lesser of the following:

1) taxes owed = $61

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then you subtract half of your AGI over $10,000 = ($22,000 - $10,000) x 50% = $5,500

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3 years ago

Why are certain policy decisions (like those undertaken by the federal reserve) best informed by using the core inflation index

Pani-rosa [81]

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1 year ago

Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, a profit-maximizing firm'

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Answer:

economic profits = 0

so correct option is a)zero

Explanation:

given data

output = 100 units

total fixed cost = $600

total variable cost = $400

price of product = $10 per unit

firm produces = 100 unit

to find out

firm earn an economic profit of Group

solution

we know here Total revenue is

Total revenue = 10 × 100 =$1000

and Total cost is here

Total cost = $400 + $600

Total cost = $1,000

so economic profits is express as

economic profits = revenue - cost

economic profits = 1000 - 1000

economic profits = 0

so correct option is a)zero

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3 years ago