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

Journal Entries Date Account Title and Explaination Debit Credit Post. Ref. Jan. 24 20,000.00 65,000.00 Cash Accounts Receivable Service Revenue (To record Service provided for cash and on account) 85,000.00 Mar.13 53,000.00 Cash Accounts Receivable (To record collection of receivables) 53,000.00 May.6 11,000.00 Cash Common Stock (To record Common Stock issued for cash) 11,000.00 Jun.30 Salaries Expense 33,000.00 Cash s 33,000.00 (To record Salaries paid)

Jun.30 Salaries Expense $ 33,000.00 Cash 33,000.00 (To record Salaries paid) Sep.15 7,000.00 Utilities Payable Cash (To record utilities due of previous year paid) 7,000.00 Nov.24 10,000.00 Cash Deferred Revenue (To record advance received for future service) 10,000.00 Dec.30 $ 3,000.00 Dividends Cash (To record Cash dividends paid) 3,000.00

8,000.00 Adjusting Entries Depreciation Expense Accumulated Depreciation (To record depreciation expense on machinery) 8,000.00 2,400.00 Supplies Expense ($3500-$1100) Supplies (To record consumption of supplies) 2,400.00 7,000.00 Deferred Revenue Service Revenue |(To record earned portion of Unearned service revenue) 7,000.00 6,000.00 Utilities Expense Utilities Payable (To record accrued Utilities expense) 6,000.00