The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:
Accounts | Debits | Credits | |||||
Cash | $ | 3,750 | |||||
Accounts Receivable | 8,750 | ||||||
Supplies | 2,750 | ||||||
Equipment | 21,000 | ||||||
Accumulated Depreciation | $ | 5,000 | |||||
Accounts Payable | 3,000 | ||||||
Utilities Payable | 4,000 | ||||||
Deferred Revenue | 0 | ||||||
Common Stock | 15,500 | ||||||
Retained Earnings | 8,750 | ||||||
Totals | $ | 36,250 | $ | 36,250 | |||
The following is a summary of the transactions for the year:
1. | January 24 | Provide plumbing services for cash, $12,500, and on account, $57,500. | ||||
2. | March. 13 | Collect on accounts receivable, $45,500. | ||||
3. | May. 6 | Issue shares of common stock in exchange for $10,000 cash. | ||||
4. | June. 30 | Pay salaries for the current year, $31,500. | ||||
5. | September. 15 | Pay utilities of $4,000 from 2020 (prior year). | ||||
6. | November. 24 | Receive cash in advance from customers, $7,000. | ||||
7. | December. 30 | Pay $1,500 cash dividends to stockholders. |
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $5,000. Plumbing supplies remaining on hand at the end of the year equal $1,000. Of the $7,000 paid in advance by customers, $5,500 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,500.
- Questions: Journal entry Worksheet:
1- Jan 24: Record plumbing services provided for cash, $12,500, and on account, $57,500.
2- March 13: Record the collection on accounts receivable, 45,500.
3- May 6: Record the issuance of shares of common stock in exchange for $10,000 cash.
4- June 30: Record the payment of salaries for the current year, $31,500.
5- September 15: Record the payment of utilities of $4,000 from 2020.
6- Nov 24: Record the cash received in advance from customers, $7,000.
7- December 30: Record payment of $1,500 cash dividends to stockholders.
8- December 31: Record the adjusting entry for depreciation.
9- December 31: Record the adjusting entry for supplies.
10- December 31: Record the adjusting entry for revenue earned. Of the $7,000 paid in advance by customers, $5,500 of the work has been completed by the end of the year.
11- December 31: Record the adjusting entry for accrued utilities. Accrued utilities at year-end amounted to $7,500.
12- December 31: Record the closing entry for revenue.
13- December 31: Record the closing entry for expenses.
14- December 31: Record the closing entry for cash dividends.
Pipers Plumbing | |||||
Journal entries | |||||
No. | Date | Account | Debit | Credit | Calculation |
1 | 24-Jan | Cash | $ 12,500 | ||
Accounts Receivable | $ 57,500 | ||||
Service Revenue | $ 70,000 | ||||
2 | 13-Mar | Cash | $ 45,500 | ||
Accounts Receivable | $ 45,500 | ||||
3 | 6-May | Cash | $ 10,000 | ||
Common Stock | $ 10,000 | ||||
4 | 30-Jun | Salaries expense | $ 31,500 | ||
Cash | $ 31,500 | ||||
5 | 15-Sep | Utilties Payable | $ 4,000 | ||
Cash | $ 4,000 | ||||
6 | 24-Nov | Cash | $ 7,000 | ||
Deferred Revenue | $ 7,000 | ||||
7 | 30-Dec | Dividends | $ 1,500 | ||
Cash | $ 1,500 | ||||
Adjusting entries | |||||
8 | 31-Dec | Depreciation expense | $ 5,000 | ||
Accumulated Depreciation | $ 5,000 | ||||
9 | 31-Dec | Supplies expenses | $ 1,750 | =2,750-1,000 | |
Supplies | $ 1,750 | ||||
10 | 31-Dec | Deferred Revenue | $ 5,500 | ||
Service Revenue | $ 5,500 | ||||
11 | 31-Dec | Utilties expenses | $ 7,500 | ||
Utilties Payable | $ 7,500 | ||||
Closing entries | |||||
12 | 31-Dec | Service Revenue | $ 75,500 | ||
Retained Earnings | $ 75,500 | ||||
13 | 31-Dec | Retained Earnings | $ 45,750 | ||
Salaries expense | $ 31,500 | ||||
Utilties expenses | $ 7,500 | ||||
Supplies expenses | $ 1,750 | ||||
Depreciation expense | $ 5,000 | ||||
14 | 31-Dec | Retained Earnings | $ 1,500 | ||
Dividends | $ 1,500 |
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Accounts...
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Credits Debits $ 3,750 8,750 2,750 21,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $ 5,000 3,000 4,000 15,500 8,750 $36,250 $36,250 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $12,500, and on account, $57,500. 2. March 13 Collect on accounts receivable,...
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 4,400 Accounts Receivable 9,400 Supplies 3,400 Equipment 34,000 Accumulated Depreciation $ 7,600 Accounts Payable 5,600 Utilities Payable 6,600 Deferred Revenue 0 Common Stock 22,000 Retained Earnings 9,400 Totals $ 51,200 $ 51,200 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $19,000, and on account, $64,000. 2. March 13...
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 Totals $ 8,000 6,000 7,000 23,000 9,500 $53,500 $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,...
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Credits Debits $ 3,850 8,850 2,850 23,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $ 5,400 3,400 4,400 0 16,500 8,850 $38,550 $38,550 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $13,500, and on account, $58,500. 2. March 13 Collect on accounts...
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...
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 Totals $ 8,000 6,000 7,000 23,000 9,500 $53,500 $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,...
The general ledger ot Pipers Plumbing at January 1, 2021, includes the tollowing account balances: Accounts Debits Credits Cash $4,100 Accounts 9,100 Receivable Supplies Equipment Accumulated Depreciation Accounts Payable 3,100 28,000 $ 6,400 4,400 Utilities Payable Deferred Revenue 5,400 19,000 Common Stock Retained Earnings 9,100 $44,300 $44,300 Totals The following is a summary of the transactions for the year 24 Provide plumbing services for cash, $16,000, and on $61,000 13 Collect on accounts receivable, $49,000 6 Issue shares of common...
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Credits Debits $ 4,000 9,000 3,000 26,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $ 6,000 4,000 5,000 0 18,000 9,000 $42,000 $42,000 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $15,000, and on account, $60,000. 2. March 13 Collect on accounts...
The general ledger of Pipers Plumbing at January 1, 2021, Includes the following account balances: Credits Debits $ 3,850 8,850 2,850 23,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $ 5,400 3,400 4,400 0 16,500 8,850 $38,550 $38,550 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $13,500, and on account, $58,500. 2. March 13 Collect on accounts...
The general ledger of Pipers Plumbing at January 1, 2021, Includes the following account balances: Credits Debits $ 3,850 8,850 2,850 23,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $ 5,400 3,400 4,400 0 16,500 8,850 $38,550 $38,550 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $13,500, and on account, $58,500. 2. March 13 Collect on accounts...