Question

owtime Saved Help (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. 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. < Prev 5 6 7 8 of 8 Next >

Answer 1

8-a	Prepare a Income Statement for the year ended December 31,2021
	PIPERS PLUMBING
	Income Statement
	For the year Ended December 31,2021
		$	$
	Service Revenue		81000	[75000+6000]
	Expenses:
	Salaries Expense	32000
	Utilities expense	7000
	Supplies expense	2000		[3000-1000]
	Depreciation expense	6000
	Total Expenses		47000
	Net Income		34000
	Statement of Retained Earnings
	For the year Ended December 31,2021
			$
	Retained Earnings, Jan 1 2021		$9,000
	Add: Net Income		$34,000
	Less: Dividends		($2,000)
	Retained Earnings, Dec 31 2021		$41,000

PIPERS PLUMBING
Balance Sheet
For the year Ended December 31,2021
Assets	$	Liabilities & Stockholders' equity
Current Assets		Current Liabilities
Cash	$46,000	Accounts Payable	$4,000
Accounts Receivable	$21,000	Utilities Payable	$7,000
Supplies	$1,000	Deferred Revenue	$2,000
Total current Assets	$68,000	Total current Liabilties	$13,000
Long term Assets		Stockholders Equity
Equipment	$26,000	Common Stock	$28,000
Accumulated Depreciation	($12,000)	Retained Earnings	$41,000
Total long term Assets	$14,000	Total stockholders Equtiy	$69,000
Total Assets	$82,000	Total Liabilities & Stockholders' equity	$82,000

Common Stock : $18000+$10000

Accounts Receivable : $9000+$60000-$48000

Deferred Revenue : $8000-$6000

	Cash A/c
Op.Bal	4000	Jun-30	32000
Jan-24	15000	Sep-15	5000
Mar-13	48000	Dec-30	2000
May-06	10000
Nov-24	8000
Bal	46000