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The general ledger of Pipers Plumbing at January 1, 2018, includes the following account balances:        ...

The general ledger of Pipers Plumbing at January 1, 2018, includes the following account balances:     
  

  Accounts Debits Credits
  Cash $ 4,400
  Accounts Receivable 9,400
  Supplies 3,400
  Equipment 34,000   
  Accumulated Depreciation $ 7,600   
  Accounts Payable 5,600   
  Utilities Payable 6,600   
  Deferred Revenue 0   
  Common Stock 22,000
  Retained Earnings 9,400
       Totals $ 51,200 $ 51,200

  

The following is a summary of the transactions for the year:

a. January 24 Provide plumbing services for cash, $19,000, and on account, $64,000.

b. March 13 Collect on accounts receivable, $52,000.

c. May 6Issue shares of common stock in exchange for $12,000 cash.

d. June 30Pay salaries for the current year, $32,800.

e. September 15 Pay for utilities expenses, $12,800, of which $6,600 represents costs for 2017.

f. November 24 Receive cash in advance from customers, $9,600.

g. December 30 Pay $2,800 cash dividends to stockholders.

h. Depreciation for the year on the machinery is $7,600. Plumbing supplies remaining on hand at the end of the year equal $1,200. Of the $9,600 paid in advance by customers, $6,800 of the work has been completed by the end of the year

1., 3., 6 & 10. Enter the beginning balances from the trial balance and post the adjusting entries and the closing entries to the T-accounts.

2. Prepare each of the summary transactions listed above.

4. Prepare an unadjusted trial balance.
5. Record adjusting entries.

7. Prepare an adjusted trial balance.

8-a. Prepare an income statement for the year ended December 31, 2018.

8-b. Prepare a classified balance sheet for the year ended December 31, 2018.

9. Record closing entries.

11. Prepare a post-closing trial balance.

Solutions

Expert Solution

Journal Entries:

Date Account Debit Credit
January 24, 2018 Cash 19000
Accounts receivable 64000
Revenue 83000
(Being plumbing serviices provided)
March 13, 2018 Cash 52000
Accounts receivable 52000
(Being cash collected)
May 6, 2018 Cash 12000
Common stock 12000
(Being shares issued)
June 30, 2018 Salaries 32800
Cash 32800
(Being salaries paid for the year)
September 15, 2018 Utility expenses 6200
Utility payable 6600
Cash 12800
(being paid for utilities)
November 24,2018 Cash 9600
Advance from customer 9600
(Being received as advance from customer)
Decemver 30, 2018 Dividend 2800
Cash 2800
(Being dividend paid)
December 31, 2018 Depreciation 7600
Accumulated depreciation 7600
(Being depreciation charged)
December 31, 2018 Supplies consumed 2200
Supplies 2200
(Being supplies consumed)
December 31, 2018 Advance from customer 9600
Revenue 6800
Deferrred revenue 2800
(Being advance from customer adjusted)

Income statement:

Particulars Amount
Revenue from operations 89800
Total revenue 89800
Expenses
Consumption of supplies 2200
Salries 32800
Depreciation 7600
Utilities 6200
Total Expenses 48800
Profit before dividend (Revenue - Expense) 41000
Dividend 2800
Retained earnings ( Profit - Dividend) 38200

Balance Sheet

Liabilities Amount Assets Amount
Common stock 34000 Equipment 34000
Retained Earnings 47600 Supplies 1200
Accounts payable 5600 Accounts Receivable 21400
Accumulated depreciation 15200 Cash 48600
Deferred Revenue 2800
Total 105200 Total 105200

ekkarill92 answered 1 year ago
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