Question

Saka ACCI 201 10152. Chapter 3 Lecture Videos M MESTU Connect Chapter 3 Homework (Algo) Saved 2 Part 1 of 8 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 $ 5,080 Accounts Payable 3,000 Utilities Payable 4,000 Deferred Revenue Connon Stock 15,500 Retained Earnings 8.750 Totals $36,250 $36,250 11.11 points eBook Print The following is a summary of the transactions for the year References 1. January 24 Provide plumbing services for cash, $12,500, and on account, $57,500. 2. March 13 Collect on accounts receivable, $45,500. 3. May 6 Issue shares of common stock in exchange for $10,000 cash. 4. June 30 Pay salaries for the current year, $31,500. 5. Septenber 15 Pay utilities of $4,800 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 paid 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 2 2. Prepare each of the summary transactions listed above. (If no entry is required for a particular transaction/event, select "No ME Graw HII < Prev 2 3 4 9 of 9 ! Next >

Answer 1

Note - As per HomeworkLib guidlines we are allowed to process 1 question at a time. When there are multiple questions we can do 1st one. and only 4 sub questions.

1. Journal Entries -

Date Credit Jan 24 Pipers Plumbing Journal Entries Accounts Title Debit Cash $ 12,500 Accounts Receivable $57,500 Plumbing Service (Being Plumbing service provided) $ 70,000 Mar 13 Cash $ 45,500 Accounts Receivable (Being amount received on account) $ 45,500 May 6 $ 10,000 Cash Common Stock (Being Shares issued) $ 10,000 Jun 30 $ 31,500 Salaries Expense Cash (Being Salaries Paid) $ 31,500 Sept 15 Utilities Payable $ 4,000 Cash $ 4,000 (Being utilities expense paid for prior year) Nov 24 Cash $ 7,000 Deferred Revenue (Being cash received in advance) $ 7,000 Dec 30 Dividend $ 1,500 Cash (Being Dividend Paid) $ 1,500

2. Unadjusted Trial Balance -

Credit Pipers Plumbing Unadjusted Trial Balance Accounts Title Debit Cash $ 41,750 Accounts Receivable $ 20,750 Supplies $ 2,750 Equipment $ 21,000 Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Dividend $ 1,500 Plumbing Service Salaries Expense $ 31,500 $ 5,000 $ 3,000 $ $ 7,000 $ 25,500 $ 8,750 $ 70,000 Total $ 119,250 $119,250

3. Adjusting Entries -

Credit Pipers Plumbing Adjusting Entries Date Accounts Title Debit Dec 31 Depreciation Expense $ 5,000 Accumulated Depreciation (Being Depreciation expense incurred) $ 5,000 Dec 31 Supplies Expense $ 1,750 Supplies (Being Supplies Utilised) $ 1,750 Dec 31 Deferred Revenue $ 5,500 Plumbing Service (Being Service revenue Earned) $ 5,500 Dec 31 Utilities Expense $ 7,500 Utilities Payable (Being Utilities Expense accrued) $ 7,500

4. Adjusted Trial Balance -

Credit Pipers Plumbing Adjusted Trial Balance Accounts Title Debit Cash $ 41,750 Accounts Receivable $ 20,750 Supplies $ 1,000 Equipment $ 21,000 Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Dividend $ 1,500 Plumbing Service Salaries Expense $ 31,500 Depreciation Expense $ 5,000 Supplies Expense $ 1,750 Utilities Expense $ 7,500 $ 10,000 $ 3,000 $ 7,500 $ 1,500 $ 25,500 $ 8,750 $ 75,500 Total $131,750 $131,750

5. Income Statement -

Pipers Plumbing Income Statement For the Year ended December 31, 2021 Plumbing Service $ 75,500 Expenses: Salaries Expense Supplies Expense Depreciation Expense Utilities Expense $ 31,500 $ 1,750 $ 5,000 $ 7,500 $ 45,750 Net Income $ 29,750

6. Balance Sheet -

Pipers Plumbing Balance Sheet December 31, 2021 Liabilities Assets Current Assets: Cash Accounts Receivable Supplies Current Liabilities: $ 41,750 Accounts Payable $ 20,750 Utilities Payable $ 1,000 Deferred Revenue $ 3,000 $ 7,500 $ 1,500 $ 12,000 Total Current Assets $ 63,500 Total Current Liabilities Long Term Assets: Equipment $ 21,000 Stockholder's Equity Accumulated Depreciation $(10,000) Common Stock Retained Earnings (-) Dividends (+) Net Income $ 25,500 $ 8,750 $ (1,500) $ 29,750 Total Stockholder's Equity $ 62,500 $ 74,500 Total Liabilities & Stockholder's Equity $74,500 Total Assets