Question

Ime Saved Help 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 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 receivable, $48,000. 3. May 6 Issue shares of common stock in exchange for $10,000 cash. 4. June 30 Pay salaries for the current year, $32,000. 5. September 15 Pay utilities of $5,000 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $8,000. 7. December 30 Pay $2,000 cash dividends to stockholders. The following information is available for the adjusting entries.

Answer 1

Account Particulars	Debit	Credit
Cash	$        46,000
Accounts Receivable	$        21,000
Supplies	$          1,000
Equipment	$        26,000
Acc.Depreciation		$        12,000
Accounts payable		$          4,000
Utilities payable		$          7,000
Deffered revenue		$          2,000
Common stock		$        28,000
Retained earnings		$          9,000
Dividends	$          2,000
Service revenue		$        81,000
Salaries expense	$        32,000
Utilities expense	$          7,000
Supplies expense	$          2,000
Depreciation expense	$          6,000
TOTAL	$      143,000	$      143,000

---------------------------

Workings:

1 Journal Entries 2 Adjusting Entries: Credit Credit Sl.no Date 1 Jan.24 Debit $ 15,000 $ 60,000 Sl.no 8 Account title Cash Accounts Receivable Service Revenue Date Account title Dec.31 Depreciation expense Accumulated Depreciation Debit $ 6,000 $ 6,000 $ 75,000 9 $ 2,000 Dec.31 Supplies expense[$3,000-1,000] Supplies 2 Mar.13 $ 48,000 $ 2,000 Cash Accounts Receivable $ 48,000 10 $ 6,000 3 Dec.31 Deferred revenue Service Revenue 3 May.06 $ 10,000 $ 6,000 Cash Common stock $ 10,000 11 $ 7,000 Dec.31 Utilities expense Utilities payable 4 Jun.30 $ 32,000 $ 7,000 Salaries expense Cash $ 32,000 5 Sep.15 $ 5,000 Utilities payable Cash $ 5,000 6 Nov.24 $ 8,000 Cash Deferred Revenue $ 8,000 7 Dec.30 $ 2,000 Dividends Cash $ 2,000

Account Particulars 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 Adjusted T/B Debit Credit Debit Credit Debit Credit $ 4,000 $ 42,000 $ 46,000 $ 9,000 $ 12,000 $ 21,000 $ 3,000 $ -2,000 $ 1,000 $ 26,000 $ $ 26,000 $ 6,000 $ 6,000 $ 12,000 $ 4,000 $ 4,000 $ 5,000 $ 2,000 $ 7,000 $ $ 2,000 $ 2,000 $ 18,000 $ 10,000 $ 28,000 $ 9,000 $ $ 9,000 $ 2,000 $ 2,000 $ 81,000 $ 81,000 $ 32,000 $ 32,000 $ 7,000 $ 7,000 $ 2,000 $ 2,000 $ 6,000 $ 6,000 $ 42,000 $ 42,000 $ 101,000 $ 101,000 $ 143,000 $ 143,000 Adjustments: *Cash=[$15,000+48,000+10,000-32,000-5,000+8,000-2,000] =$42,000. *Accounts Receivable= ($60,000-48,000]=$12,000 *Supplies=[$2,000] *Utilities Payable=[$7,000-5,000] =$2,000. *Deferred Revenue=[$8,000-6,000]=$2,000 *Service Revenue=[$75,000+6,000]=$81,000

Pipers Plumbing Income Statement For the year ended Dec 31,2021 Revenue: Service revenue $ 81,000 Expenses: Salaries expense $ 32.000 Utilities expense $ 7,000 Supplies expense $ 2.000 Depreciation expense $ 6,000 Total Expenses $ 47,000 Net Profit $ 34,000 Pipers Plumbing Statement of Retained Earnings For the year ended Dec, 31,2021 Retained Earnings $ 9,000 plus: Net income $ 34,000 Less: Dividend paid $ 2,000 Ending Retained earnings $ 41,000 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: $ 46,000 Accounts payable $ 21,000 Utilities payable $ 1,000 Deffered revenue $ 68,000 Total Current Liabilities Shareholder's Equity $ 26,000 Common stock $ -12,000 Retained earnings $ 14,000 Total Stockholders Equity $ 82,000 Total Liabilities and Stockholders Equity $ $ 4,000 $ 7,000 $ 2.000 $ 13,000 $ 28,000 $ 41.000 $ 69,000 $ 82,000

--------------------------------------

If you have any queries/doubts,Immediately drop your messages in the comment box !!!! I will help you...
Thanks!!!