Question

GL2-14 Complete the full accounting cycle The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: points Credits Debits $ 4,100 9,100 3,100 28,000 eBook Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $ 6,400 4,400 5,400 Print 19,000 9,100 $ 44,300 $ 44,300 References The following is a summary of the transactions for the year: 24 Provide plumbing services for cash, $16,000, and on account, $61,000. 2. March 13 Collect on accounts receivable, $49,000. 6 Issue shares of common stock in exchange for $12,000 cash. 4. June 30 Pay salaries for the current year, $32,200. 5. September 15 Pay utilities of $5,400 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $8,400. 7. December 30 Pay $2,200 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $6,400. Plumbing supplies remaining on hand at the end of the year equal $1,200. Of the $8,400 paid in advance by customers, $6,200 of the work has been completed by the end of the year. Accrued utilities at year- end amounted to $6,800.

Answer 1

Pipers Plumbing Journal Enteries Date Particulars 24.1.2021 Cash a/c Dr. Accounts Receivable a/c Dr. To Plumbing Service Revenue (Plumbing Service provided) Debit in $ Credit in $ 16000 61000 77000 13.3.2021 49000 Cash a/c Dr. To Accounts Receivable (Cash received from debtors) 49000 6.5.2021 Dr. 12000 Cash a/c To Common Stock (Common Stock issued for cash) 12000 30.6.2021 Dr. 32200 Salaries Expense a/c To Cash (Salaries paid in cash) 32200 15.9.2021 Dr. Dr. Utilities Expense a/c Utilities Payable a/c To Cash (Utilities paid in cash) 5400 24.11.2021 Cash a/c Dr. 8400 To Deferred Revenue (Cash received in advance from customers) 8400 2200 30.12.2021 Dividends a/c Dr. To Cash (Dividends paid in cash) 2200

Adjustment Enteries Date Particulars Debit in $ Credit in $ 31.12.2021 Depreciation Expense a/c Dr. 6400 To Accum. Depre - Equip 6400 (Depreciation charged to Equipment) 1900 31.12.2021 Supplies Expense a/c Dr. To Plumbing Supplies (Supplies Expensed) 3100-1200 1900 6200 31.12.2021 Deferred Revenue a/c Dr. To Plumbing Service Revenue 6200 Dr. 6800 31.12.2021 Utilities Expense a/c To Utilities Payable (Expense accrued) 6800 Closing Enteries Date Particulars 31.12.2021 Income Summary a/c Dr. To Salaries Expense To Utilities Expense To Depreciation Expense To Supplies Expense (Expense accounts closed) Debit in $ Credit in $. 47300 32200 6800 6400 1900 83200 31.12.2021 Plumbing Service Revenue a/c Dr. To Income Summary (Revenue accounts closed out) 83200 35900 31.12.2021 Income Summary a/c Dr. To Retained Earnings (Profits transferred) 35900 2200 31.12.2021 Retained Earnings a/c Dr. To Dividends (Dividend charged to Retained earnings) 2200

Worksheet For the period ending 31.12.2021 Particulars Cash Accounts Receivable Supplies Equipment Accum. Depre - Equip Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Dividends Plumbing Service Revenue Salaries Expense Utilities Expense Depreciation Expense Supplies Expense Totals Unadjusted Adjustment Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 49700 49700 49700 21100 21100 21100 3100 1900 1200 1200 28000 28000 28000 6400 6400 12800 12800 4400 4400 4400 6800 6800 6800 8400 6200 2200 2200 31000 31000 31000 9100 9100 42800 2200 2200 77000 6200 83200 32200 32200 6800 6800 6400 6400 1900 1900 136300 136300 21300 21300 149500 149500 100000 100000

83200 Statement of Income For the period ending 31.12.2021 Plumbing Service Revenue Less: Salaries Expense Utilities Expense Depreciation Expense Supplies Expense Net Income 32200 6800 6400 1900 47300 35900 Statement of Retained Earnings For the period ending 31.12.2021 Beginning 9100 Net Income 35900 45000 Less:Dividends -2200 42800

Amounts in $ Amounts in $ Balance sheet As at 31.12.2021 Assets Current Assets Cash Accounts Receivable Supplies Amounts in $ Amounts in $ Liabilities Current Liabilities 49700 Accounts Payable 21100 Deferred Revenue 1200 72000 Utilities Payable 4400 2200 6800 13400 Non Current Assets Equipment Accum. Depre - Equip Total Assets 28000 -12800 Shareholders Equity Common Stock 15200 Retained Earnings 87200 Total Liabilities & Equity 31000 42800 73800 87200