Question

time Saved Help Save & E 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 yea). 6. November 24 Receive cash in advance from customers, $8,odo. 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. 5 < Prev 7 8 of 8 Next >

Answer 1

Prepare journal entries as follows;

Date	Account Titles	Debit	Credit
January. 24	Cash	$15,000
	Accounts receivable	$60,000
	Service revenue		$75,000
Mar. 13	Cash	$48,000
	Accounts receivable		$48,000
May. 06	Cash	$10,000
	Common stock		$10,000
Jun. 30	Salaries Expense	$32,000
	Cash		$32,000
Sept. 15	Utilities payable	$5,000
	Cash		$5,000
Nov. 24	Cash	$8,000
	Deferred revenue		$8,000
Dec. 30	Dividends	$2,000
	Cash		$2,000

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Prepare adjusting entries as follows:

Date	Account Titles	Debit	Credit
Dec. 31	Depreciation expense	$6,000
	Accumulated depreciation		$6,000
Dec. 31	Supplies Expense	$2,000
	Supplies [$3000 - $1000]		$2,000
Dec. 31	Deferred revenue	$6,000
	Service revenue		$6,000
Dec. 31	Utilities Expense	$7,000
	Utilities payable		$7,000

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Prepare t-accounts as follows:

Supplies $3.000 Dec. 31 Accounts receivable $9,000 Mar. 13 $60.000 $48.000 Beg. Bal. $2,000 Cash $4.000 January 24 $48.000 Jun 30 $10,000 Sept. 15 $8,000 Dec. 30 Beg. Bal January 24 Beg. Bal. Mar. 13 May. 06 Nov. 24 $15,000 $32,000 $5,000 $2,000 End. Bal. $1.000 End. Bal. $21,000 End. Bal. $16.000 Equipment $26.000 Accounts payable Beg. Bal. Beg. Bal $4,000 Accumulated depreciation Beg. Bal. Dec. 31 End. Bal. $6,000 $6,000 $12,000 End. Bal. $26.000 End. Bal. $4,000 Sept. 15 Dec. 31 Utilities payable $5,000 Beg. Bal. Dec. 31 End. Bal. $5,000 $7,000 $7,000 Deferred revenue $6.000 Beg. Bal. Nov. 24 End. Bal. SO $8,000 $2,000 Common stock Beg. Bal. May. 06 End. Bal. $18,000 $10,000 $28.000

Salaries Expense $32,000 Dividends $2,000 Jun. 30 Dec. 30 Service revenue January 24 Dec. 31 End. Bal. $75,000 $6,000 $81,000 End. Bal. $32,000 End. Bal $2.000 Utilities Expense $7.000 Supplies Expense $2,000 Depreciation expense $6,000 Dec. 31 Dec. 31 Dec. 31 End. Bal $7,000 End. Bal. $2,000 End. Bal. $6,000