Question

Saved Chapter 3 Homework (Algo) 6 Part 5 of 8 11 ints 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: 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 eBook Print The following is a summary of the transactions for the year: 3. May 1. January 24 Provide plumbing services for cash, $12,500, and on account, $57,500. 2. March 13 Collect on accounts receivable, $45,500. 6 Issue shares of conmon stock in exchange for $10,000 cash. 4. June 38 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 peld 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. Problem 3-8B Part 8 W < Prev 6 7 8 9 of 9 Next >

Answer 1

Credit Account Particulars 1 Journal Entries Sl.no Date Account title 1 Jan.24 Cash Accounts Receivable Service Revenue Debit $ 12,500 $57,500 $70,000 2 Mar.13 $ 45,500 - Cash Accounts Receivable $ 45,500 3 May.06 $10,000 Cash Common stock $ 10,000 Cash Accounts Receivable Supplies Equipment Acc.Depreciation Accounts payable Utilities payable Deffered revenue Common stock Retained earnings Dividends Service revenue Salaries expense Utilities expense Supplies expense Depreciation expense TOTAL Unadjusted Adjustments Debit Credit Debit Credit $ 3,750 $ 38,000 $ 8,750 $ 12,000 $ 2,750 $ -1,750 $ 21,000 $ $ 5,000 $ 5,000 $ 3,000 $ $ 4,000 $ 3,500 $ 1,500 $ 15,500 $10,000 $ 8,750 $ $ 1,500 $ 75,500 $31,500 $ 7,500 $ 1,750 $ 5,000 $36,250 $36,250 $ 95,500 $ 95,500 Adjusted T/B Debit Credit $ 41,750 $ 20,750 $ 1,000 $ 21,000 $ 10,000 $ 3,000 $ 7,500 $ 1,500 $ 25,500 $ 8,750 $ 1,500 $ 75,500 $ 31,500 $ 7,500 $ 1,750 $ 5,000 $ 131,750 $ 131,750 4 Jun.30 Salaries expense $31,500 Cash $31,500 5 Sep.15 $ 4,000 Utilities payable Cash $ 4,000 6 Nov.24 $ 7,000 Cash Deferred Revenue $ 7,000 Dec.30 Dividends Cash $ 1 1,500 $ 1,500

2 8 Dec.31 Adjusting Entries: Depreciation expense Accumulated Depreciation $ 5,000 $ 5,000 9 Dec.31 Supplies expense [$2,750-1,000] $ 1,750 Supplies $ 1,750 10 Dec.31 $ 5,500 Deferred revenue Service Revenue $ 5,500 11 Dec.31 $ 7,500 Utilities expense Utilities payable $ 7,500

Pipers Plumbing Income Statement For the year ended Dec 31,2021 Revenue: Service revenue $75,500 Expenses: Salaries expense $31,500 Utilities expense $ 7,500 Supplies expense $ 1,750 Depreciation expense $ 5,000 Total Expenses $ 45,750 Net Profit $29,750 Pipers Plumbing Statement of Retained Earnings For the year ended Dec, 31,2021 Retained Earnings $ 8,750 plus: Net income $ 29,750 Less: Dividend paid $ 1,500 Ending Retained earnings $ 37,000 Assets Current Asset: Cash Accounts Receivable Supplies Total Current Asset Long-term Assets: Equipment Less: Accu. Depreciation Total Long-term Asset Total Assets Pipers Plumbing Balance sheet Dec,31,2021 Liabilities Current Liabilities: $ 41,750 Accounts payable $ 20,750 Utilities payable $ 1,000 Deffered revenue $ 63,500 Total Current Liabilities Shareholder's Equity $ 21,000 Common stock $-10,000 Retained earnings $ 11,000 Total Stockholders Equity $ 74,500 Total Liabilities and Stockholders Equity $ $ 3,000 $ 7,500 $ 1,500 $12,000 $ 25,500 $ 37,000 $62,500 $ 74,500

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