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 Debits Credits Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings $4,300 9,300 3,300 32,000 $7,200 5,200 6,200 0 21,000 9,300 Totals $48,900 $48,900 The following is a summary of the transactions for the year: a. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000 b. March 13 Collect on accounts receivable, $51,000 c. May 6lssue shares of common stock in exchange for $10,000 cash. d. June 30Pay salaries for the current year, $32,600 e. September 15 Pay for utilities expenses, $12,600, of which $6,200 represents costs for 2017 f. November 24 Receive cash in advance from customers, $9,200 g. December 30 Pay $2,600 cash dividends to stockholders. h. Depreciation for the year on the machinery is $7,200. Plumbing supplies remaining on hand at the end of the year equal $1,000. Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.

Explanation / Answer

Cash Accounts receivable beg bal 4,300 Beg bal 9,300 a 18,000 32,600 d. a. 63,000 51,000 b. b. 51,000 12,600 e. c. 10,000 2,600 g. f. 9,200 end bal 44,700 End bal 21,300 Supplies Equipment Beg .Bal 3,300 Beg .Bal 32,000 2,300 h. End bal 1,000 End bal 32,000 Accumulated Depreciation Accounts payable Beg.Bal 7,200 Beg.Bal 5,200 7,200 h End bal 14,400 End bal 5,200 Utilities payable Deferred Revenue Beg .bal 6,200 Beg .bal 0 e. 6,200 h. 6,600 9,200 f End bal 0 End bal 2,600 Common Stock Retained earnings Beg bal 21,000 Beg.Bal 9,300 10,000 c. End bal 31,000 End bal 9,300 Dividends Service revenue Beg bal 0 Beg.Bal 0 g. 2,600 81,000 a. 6,600 h. End bal 2600 End bal 87,600 Salaries expense Utilities expense Beg.Bal 0 Beg.Bal 0 d. 32,600 e. 6,400 End bal 32600 End bal 6400 Supplies expense Depreciation expense Beg.Bal 0 Beg.Bal 0 h. 2,300 h. 7,200 End bal 2300 End bal 7200

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