Question

Required information [The following information applies to the questions displayed below.) 00 The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Credits Accounts Debits Cash $ 4,100 Accounts 9,100 Receivable Supplies 3,100 Equipment 28,000 Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $44,300 $ 6,400 4,400 5,400 19,000 9,100 $44,300 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $16,000, and on account, $61,000. 2. March 13 Collect on accounts receivable, $49,000. 3. May 6 Issue shares of common stock in exchange for $12,000 cash. 4. June 30 Pay salaries for the current year, $32,200. 5. September 15 Pay utilities of $5,400 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $8,400. 7. December 30 Pay $2,200 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $6,400. Plumbing supplies remaining on hand at the end of the year equal $1,200. Of the $8,400 paid in advance by customers, $6,200 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $6,800.

Answer 1

8-a.

Income Statement
Service Revenue		$           83,200.00
Less: Expenses
Salaries Expense	$      32,200.00
Supplies Expense	$        1,900.00
Depreciation Expense	$        6,400.00
Utilities Expense	$        6,800.00
Total Expenses		$           47,300.00
Net Income		$           35,900.00

8-b

Balance Sheet
Assets		Liabilities
Cash	$      49,700.00	Accounts Payable	$      4,400.00
Account Receivable	$      21,100.00	Deferred Revenue	$      2,200.00
Supplies	$        1,200.00	Accrued Utilities	$      6,800.00
Total Current Assets	$      72,000.00	Total Current Liabilities	$    13,400.00
Long Term Assets:		Stockholders Equity
Equipment	$      28,000.00	Common Stock (19000+12000)	$    31,000.00
Accumulated Depreciation	$    (12,800.00)	Retained Earnings (9100+35900-2200)	$    42,800.00
		Total Stockholders Equity	$    73,800.00
Total Assets	$     87,200.00	Total Liabilities and Stockholders Equity	$    87,200.00