Question

Required information 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 Debito Credits Cash $ 3,950 Accounts Receivable 8.950 Supplies 2.950 Equipment 25,000 Accumulated Depreciation $ 5,800 Accounts Payable 3,800 Utilities Payable 4,800 Deferred Revenue 0 Common Stock 17,500 Retained Earnings 8,950 Totals $40,850 $40,850 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $14,500, and on account, $59,500. 2. March 13 Collect on accounts receivable, $47,500. 6 Issue shares of common stock in exchange for $12,000 cash. 3. May 4. June 30 Pay salaries for the current year, $31,900. 5. September 15 Pay utilities of $4,800 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $7,800. 7. December 30 Pay $1,900 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $5,800. Plumbing supplies remaining on hand at the end of the year equal $1,200. Of the $7,800 paid in advance by customers, $5,900 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,100. Next > < Prev 7 8 9 of 9

Answer 1

Answer: CLOSING ENTRIES

Date	Account Title and Explanation	Debit $	Credit $
Dec. 31	Service Revenue (working*)	79,900
	Retained Earnings		79,900
	(To close revenue account)
Dec. 31	Retained Earnings	46,550
	Salaries Expense		31,900
	Utilities Expense		7,100
	Supplies Expense (2,950-1,200)		1,750
	Depreciaion Expense		5,800
	(To close expense accounts)
Dec. 31	Retained Earnings	1,900
	Dividends		1,900
	(To close dividend account)

Working*:-

Service Revenue	Amount $
Cash received on Jan. 24 for providing plumbing service	14,500
Account receivable on Jan. 24 for providing plumbing service	59,500
Revenue for work completed by the end of the year	5,900
Total	79,900

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