Question

me Saved Help Save 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. Depreciation for the year on the machinery is $6,000. Plumbing supplies remaining on hand at the end of the year equal $1,000. Of the $8,000 paid in advance by customers, $6,000 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,000. Prey 6 7 8 Next

Answer 1

Closing Entries
Event	Particulars			Debit	Credit
1)	Service Revenue			$ 81,000.00
	To Retained Earnings				$ 81,000.00
2)	Retained Earnings			$ 47,000.00
	To Salaries Expense				$ 32,000.00
	To Depreciation Expense				$   6,000.00
	To Utilities Expense				$   7,000.00
	To Supplies Expense				$   2,000.00
3)	Retained Earnings			$   2,000.00
	To Dividends				$   2,000.00

Workings:

Adjusted Trial Balance
			Debit	Credit
Cash			$    46,000.00
Accounts Receivable			$    21,000.00
Supplies			$      1,000.00
Equipment			$    26,000.00
Accumulated Depreciation				$    12,000.00
Accounts Payable				$      4,000.00
Utilities Payable				$      7,000.00
Deferred Revenue				$      2,000.00
Common Stock				$    28,000.00
Retained Earnings				$      9,000.00
Dividends			$      2,000.00
Service Revenue				$    81,000.00
Salaries Expense			$    32,000.00
Depreciation Expense			$      6,000.00
Utilities Expense			$      7,000.00
Supplies Expense			$      2,000.00
Total			$1,43,000.00	$1,43,000.00