Question

Problem 3-8B Complete the full accounting cycle (LO3-3, 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 Debits $ 3,500 8,500 2,500 16,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $ 4,000 2,000 3,000 13,000 8,500 $30,500 $30,500 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $10,000, and on account, $55,000. 2. March 13 Collect on accounts receivable, $ 43,000. 3. May 6 Issue shares of common stock in exchange for $12,000 cash. 4. June 30 Pay salaries for the current year, $31,000. 5. September 15 Pay utilities of $3,000 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $6,000. 7. December 30 Pay $1,000 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $4000. Plumbing supplies remaining on hand at the end of the year equal $1,200. Of the $6,000 paid in advance by customers, $5,000 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $8,000.

Answer 1

CASH					Accounts Receivable
Beg.Bal	$ 3,500				Beg.Bal	$ 8,500
Jan-24	$ 10,000	$ 31,000	Jun-30		Jan-24	$ 55,000	$ 43,000	Mar-13
Mar-13	$ 43,000	$ 3,000	Sep-15
May-06	$ 12,000	$ 1,000	Dec-30
Nov-24	$ 6,000
End.Bal.	$ 39,500				End.Bal.	$ 20,500
Supplies					Equipment
Beg.Bal	$ 2,500				Beg.Bal	$ 16,000
		$ 1,300	Dec-31
		(2500-1200)
End.Bal.	$ 1,200				End.Bal.	$ 16,000
Accumulated Depreciation .					Accounts payable
Beg.Bal		$ 4,000			Beg.Bal		$ 2,000
		$ 4,000	Dec-31
End.Bal.		$ 8,000			End.Bal.		$ 2,000
Utilities Payable					Deferred Revenue
Beg.Bal		$ 3,000			Beg.Bal		$ 0
Sep-15	$ 3,000	$ 8,000	Dec-31		Dec-31	$ 5,000	$ 6,000	Nov-24
End.Bal.		$ 8,000			End.Bal.		$ 1,000
Common stock					Retained Earnings
Beg.Bal		$ 13,000			Beg.Bal		$ 8,500
		$ 12,000	May-06
End.Bal.		$ 25,000			End.Bal.		$ 8,500
Dividends					Service Revenue
Beg.Bal	$ 0				Beg.Bal		$ 0
Dec-30	$ 1,000						$ 65,000	Jan-24
							$ 5,000	Dec-31
End.Bal.	$ 1,000				End.Bal.		$ 70,000
Salaries expense					Utilities Expense
Beg.Bal	$ 0				Beg.Bal	$ 0
Jun-30	$ 31,000				Dec-31	$ 8,000
End.Bal.	$ 31,000				End.Bal.	$ 8,000
Supplies Expense					Depreciation Expense
Beg.Bal	$ 0				Beg.Bal	$ 0
Dec-31	$ 1,300				Dec-31	$ 4,000
	(2500-1200)
End.Bal.	$ 1,300				End.Bal.	$ 4,000