Question

Required information 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 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 0 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.
Complete the full accounting cycle

Answer 1

Credit Calculation Pipers Plumbing Journal entries No. Date Account 1 24-Jan Cash Accounts Receivable Service Revenue Debit $ 12,000 $ 57,000 $ 69,000 $ 45,000 2 13-Mar Cash Accounts Receivable $ 45,000 3 $ 11,000 6-May Cash Common Stock $ 11,000 4 $ 31,400 30-Jun Salaries expense Cash $ 31,400 5 $ 3,800 15-Sep Utilties Payable Cash $ 3,800 6 $ 6,800 24-Nov Cash Deferred Revenue $ 6,800 $ 1,400 $ 1,400 7 30-Dec Dividends Cash Adjusting entries 8 31-Dec Depreciation expense Accumulated Depreciation $ 4,800 $ 4,800 $ 1,600 =2,700-1,100 9 31-Dec Supplies expenses Supplies $ 1,600 $ 5,400 10 31-Dec Deferred Revenue Service Revenue $ 5,400 $ 7,600 $ 7,600 11 31-Dec Utilties expenses Utilties Payable Closing entries 12 31-Dec Service Revenue Retained Earnings $ 74,400 $ 74,400 $ 45,400 13 31-Dec Retained Earnings Salaries expense Utilties expenses Supplies expenses Depreciation expense $ 31,400 $ 7,600 $ 1,600 $ 4,800 $ 1,400 14 31-Dec Retained Earnings Dividends $ 1,400

Date Date Date Credit Pipers Plumbing T Accounts Date Debit Date Credit Cash Op bal $ 3,700 30-Jun $ 31,400 24-Jan $ 12,000 15-Sep $ 3,800 13-Mar $ 45,000 30-Dec $ 1,400 6-May $ 11,000 24-Nov $ 6,800 Debit Date Credit Accounts Receivable $ 8,700 $ 57,000 13-Mar $ 45,000 Debit Date Credit Supplies $ 2,700 31-Dec $ 1,600 Debit Date Equipment $ 20,000 Op bal Op bal Op bal 24-Jan Bal. Bal. Bal. $ 41,900 Accumulated Depreciation Op bal $ 4,800 31-Dec $ 4,800 $ 20,700 Accounts Payable Op bal $ 1,100 Utilties Payable $ 3,800 Op bal $ 3,800 31-Dec $ 7,600 Bal. $ 20,000 Deferred Revenue Op bal $ . 31-Dec $ 5,400 24-Nov $ 6,800 $ 2,800 15-Sep $ 9,600 7,600 $ 1,400 Bal. Common Stock Op bal 6-May Bal. $ 2,800 Retained Earnings 31-Dec $ 45,400 Op bal $ 8,700 31-Dec $ 1,400 31-Dec $ 74,400 Bal. $ Dividends $ 1,400 31-Dec $ $15,000 $ 11,000 Bal. Service Revenue 24-Jan 31-Dec $ 74,400 | 31-Dec 30-Dec 1,400 $ 69,000 $ 5,400 Bal. Bal. $ 26,000 Salaries expense $ 31,400 31-Dec $ 31,400 Bal. $ 36,300 Bal. Utilties expenses 31-Dec $ 7,600 31-Dec $ 7,60031-Dec $ - Depreciation expense 31-Dec $ 4,800 31-Dec $ 4,800 Supplies expenses $ 1,600 31-Dec $ 30-Jun 1,600 Bal. $ - Bal. $ - Bal. $ . Bal. $

Unadjusted TB Debit Credit 41,900 20,700 2,700 20,000 4,800 2,800 Pipers Plumbing Account Names Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilties Payable Deferred Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries expense Utilties expenses Supplies expenses Depreciation expense Totals Adjusted TB Debit Credit 41,900 20,700 1,100 20,000 9,600 2,800 7,600 1,400 26,000 8,700 1,400 74,400 31,400 7,600 1,600 4,800 130,500 130,500 Post Closing TB Debit Credit 41,900 20,700 1,100 20,000 9,600 2,800 7,600 1,400 26,000 36,300 6,800 26,000 8,700 1,400 69,000 31,400 118,100 118,100 83,700 83,700

74,400 Pipers Plumbing Income Statement For the Year Ended Dec 31, 2021 Service Revenue Expenses Salaries expense Utilties expenses Supplies expenses Depreciation expense Total Expenses Net Income 31,400 7,600 1,600 4,800 45,400 29,000 Statement of Retained Earnings For the Year Ended Dec 31, 2021 Retained Earnings, Jan 1, 2021 Net Income Less Dividends Retained Earnings, Dec 31, 2021 8,700 29,000 (1,400) 36,300

Pipers Plumbing Balance Sheet As of Dec 31, 2021 Assets Current Assets Cash Accounts Receivable Supplies Total Current Assets Liabilities & Stockholders Equity Current Liabilities 41,900 Accounts Payable 20,700 Utilties Payable 1,100 Deferred Revenue 63,700 Total Current Liabilities 2,800 7,600 1,400 11,800 Long-term Assets Equipment Accumulated Depreciation Total Long-term Assets Stockholders Equity 20,000 Common Stock (9,600) Retained earnings 10,400 Total Stockholders Equity 26,000 36,300 62,300 Total Assets 74,100 Total Liabilities & Stockholders Equity 74,100