Question

The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Credits Debits $ 4,500 9,500 3,500 36,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings $ 8,000 6,000 7,000 0 23,000 9,500 $53,500 Totals $53,500 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $20,000, and on account, $ 65,000. 2. March 13 Collect on accounts receivable, $53,000. 3. May 6 Issue shares of common stock in exchange for $11,000 cash. 4. June 30 Pay salaries for the current year, $33,000. 5. September 15 Pay utilities of $7,000 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $10,000. 7. December 30 Pay $3,000 cash dividends to stockholders.

Answer 1

Adjusted Trial Balance

Particulars	Debit	Credit
Cash	49,500
Accounts Receivable	21,500
Supplies	1,100
Equipment	36,000
Accumulated depreciation		16,000
Accounts Payable		6,000
Utilities Payable		0
Unearned Rrevenue		3,000
Common stock		34,000
Retained earnings		9,500
Dividends	3,000
Service Revenue		92,000
Salaries Expense	33,000
Utilities Expense	6,000
Supplies Expense	2,400
Depreciation Expense	8,000
	160,500	160,500

　

Income Statement:

Service Revenue	92,000
Expenses:
Salaries	33,000
Utilities	6,000
Supplies	2,400
Depreciation	8,000
Total expense	49,400
Net income	42,600

　

Balance sheet

Assets:		Liabilities
Cash	49,500	Accounts payable	6,000
Accounts Receivable	21,500	Unearned revenue	3,000
Supplies	1,100	Total current liabilities	9,000
Total current assets	72,100
		Stockholders’ Equity
Equipment	36,000	Common stock	34,000
Accumulated depreciation	-16,000	Retained earnings	49,100
		Total stockholders’ equity	83,100
Total assets	92,100	Total liabilities and stockholders’ equity	92,100