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

Question

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

  

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.

  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

Explanation / Answer

Journal Entries:

Income statement:

Balance Sheet

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)

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