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 4,300 9,300 3,300 32,000 Cash Accounts Recelvable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings s7,200 5,200 6,200 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. .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

Ans. PIPERS PLUMBING Unadjusted Trial Balance December 31, 2018 Accounts Debit Credit Cash              44,700 Accounts Receivable              21,300 Supplies                 1,000 Equipments              32,000 Accumulated Depreciation             14,400 Accounts Payable               5,200 Utilities Payable                      -   Deffered Revenue               2,600 Common Stock             31,000 Retained Earnings               9,300 Dividends                 2,600 Service revennue             87,600 Salaries Expense              32,600 Utilities Exppense                 6,400 Supplies Expense                 2,300 Depreciation Expense                 7,200       Total $        150,100 $      150,100 Working Notes: Journal Entries Account Titles Dr. ($) Cr. ($) 24-Jan Account Receivable              63,000 Cash              18,000     To Service Revenue             81,000 (Provide services for cash and on account) 13-Mar Cash              51,000     To Accounts receivable             51,000 (Cash received from accounts receivable) 6-May Cash              10,000       To Common Stock             10,000 (Cash received from Issue of common stock) 30-Jun Salaries expense              32,600     To Cash             32,600 (Being paid salaries expense for the year) 15-Sep Utilities Payable                 6,200 Utilities Expense                 6,400     To Cash             12,600 (Pay utilities expense for the year from which $6,200 of 2017) 24-Nov Cash                 9,200     To Deffered revenue               9,200 (Record Advance receipt from customers) 30-Dec Dividends                 2,600     To Cash               2,600 (Cash dividend paid to stockholders') 31-Dec Depreciation Expense                 7,200     To Accumulated Depreciation               7,200 (Depreciation expense on the machinery transferred to Accumulated Depr. account) Supplies Expense                 2,300      To Supplies               2,300 (Being Supplies used during the year) Deffered revenue                 6,600      To Service revenue               6,600 (Work completed during the year against of advance receipt)

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