Question

Problem 3-8B Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7)

[The following information applies to the questions displayed below.]

     

The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:

AccountsDebits 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.

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

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.

rev: 09_24_2019_QC_CS-181994

Problem 3-8B Part 9

9. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1