Question

Required information Problem 3-8B Complete the full accounting cycle (L03-3, 3-4, 3-5, 3-6, 3-7) [The following information applies to the questions displayed below.) The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Credits Accounts Debits Cash $ 3,700 Accounts 8,700 Receivable Supplies 2,700 Equipment 20,000 Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $35,100 $ 4,800 2,800 3,800 15,000 8,700 $35,100 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $12,000, and on account, $57,000. 2. March 13 Collect on accounts receivable, $ 45,000. 3. May 6 Issue shares of common stock in exchange for $11,000 cash. 4. June 30 Pay salaries for the current year, $31,400. 5. September 15 Pay utilities of $3,800 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $6,800. 7. December 30 Pay $1,400 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $4,800. Plumbing supplies remaining on hand at the end of the year equal $1,100. Of the $6,800 paid in advance by customers, $5,400 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,600.
The accounting cycle

Answer 1

Solution:

Pipers Plumbing - Journal Entries
Date	Particulars	Debit	Credit
31-Dec	Service revenue Dr ($12,000 + $57,000 + $5,400)	$74,400.00
	To Income summary		$74,400.00
	(To close revenue account)
31-Dec	Income summary Dr	$45,400.00
	To Salaries and wages expense		$31,400.00
	To Depreciation Expense		$4,800.00
	To Supplies Expense ($2,700 - $1,100)		$1,600.00
	To Utilities Expense		$7,600.00
	(To close expense account)
31-Dec	Retained Earnings Dr	$1,400.00
	To Dividends		$1,400.00
	(To close dividend account)