The general ledger of the Karlin Company, a consultIng company, at January 1, 2016, contalned the following account balances: Account Title Debits Credits Cash 30,500 Accounts recelvable 15,000 25

The general ledger of the Karlin Company, a consultIng company, at January 1, 2016, contalned the following account balances: Account Title Debits Credits Cash 30,500 Accounts recelvable 15,000 25.000 Equipment Accumulated depreclatlon 7,500 8,500 Salaries payable Common stock 46,000 8,500 Retained earnings Tota 70,500 70,500 The following is a summary of the transactions for the year: a. Sales of services, $122,000, of which $36.600 was on credit. b. Collected on accounts recelvable, $25,000. c. ssued shares of common stock ln exchange for $13,000 In cash. d. Pald salarles, $44,500 (of which $8,500 was for salarles payable). e. Pald mlscellaneous expenses, $24,000. f Purchased equlpment for $15,500 In cash. g. Pald $2,950 In cash dlvldends to shareholders. 1. Accrued salarles at year-end amounted to $890 2. Depreciation for the year on the equipment Is $2,500.