Question

The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Credits Debits $ 3,850 8,850 2,850 23,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $ 5,400 3,400 4,400 0 16,500 8,850 $38,550 $38,550 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $13,500, and on account, $58,500. 2. March 13 Collect on accounts receivable, $46,500. 3. May 6 Issue shares of common stock in exchange for $11,000 cash. 4. June 30 Pay salaries for the current year, $31,700. 5. September 15 Pay utilities of $4,400 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $7,400. 7. December 30 Pay $1,700 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $5,400. Plumbing supplies remaining on hand at the end of the year equal $1,100. Of the $7,400 paid in advance by customers, $5,700 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,300.

Answer 1

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Credit Closing Entries in the books of Pipers plumbing Date Account Titles and Explanations 31-Dec-21 Service Revenue Retained Earnings (To record close of revneue account) Debit $ 77,700 $77,700 $50,550 31-Dec-21 Retained Earnings Salaries expense Utilties expenses Supplies expenses Depreciation expense (To record close of expense accounts) $31,700 $ 11,700 $ 1,750 $ 5,400 $ 1,700 31-Dec-21 Retained Earnings Dividends (To record cahrge of dividend to retained earnings) $ 1,700 Workings Service Revenue Jan-24 Cash Accounts Receivable Service Revenue $ 13,500 $58,500 $72,000 $ 5,700 Dec-31 Deferred Revenue Service Revenue $ 5,700 Salaries expenses Jun-30 Salaries expense Cash $31,700 $31,700 Utilties expenses Sep-15 Utilties expenses Cash $ 4,400 $ 4,400 $ 7,300 Dec-31 Utilties expenses Utilties Payable $ 7,300 Supplies expenses Dec-31 Supplies expenses ($2,850 - $1,100) Supplies $ 1,750 $ 1,750 Depreciation expenses Dec-31 Depreciation expense Accumulated Depreciation $ 5,400 $ 5,400 Dividend Dec-30 Dividend Cash $ 1,700 $ 1,700