Precision Plumbing Company, Inc. Post-Closing Trial Balance December 31, 20XX De
ID: 2459368 • Letter: P
Question
Precision Plumbing Company, Inc.
Post-Closing Trial Balance
December 31, 20XX
Debit
Credit
Cash
$12,300
Accounts receivable
$10,700
Supplies
$1,800
Equipment
$25,800
Accumulated depreciation—Equipment
$12,300
Accounts payable
$3,300
Unearned service revenue
$4,600
Salary payable
$700
Note payable
$15,000
Schaubach, Capital
$9,000
Schaubach, Drawing
$36,000
Service revenue
$66,000
Depreciation expense
$5,500
Salary expense
$9,600
Utilities expense
$4,100
Insurance expense
$3,700
Supplies expense
$1,400
$110,900
$110,900
7. Precision Plumbing has $50,000 of 7% Bonds payable that mature in five years. The company issues these bonds at face value on January 1. Complete the issuance entry.
4. Determine Precision Plumbing’s debt to equity ratio (round to the nearest 10th). In addition, explain what this ratio indicates to a financial analyst.
Precision Plumbing Company, Inc.
Post-Closing Trial Balance
December 31, 20XX
Debit
Credit
Cash
$12,300
Accounts receivable
$10,700
Supplies
$1,800
Equipment
$25,800
Accumulated depreciation—Equipment
$12,300
Accounts payable
$3,300
Unearned service revenue
$4,600
Salary payable
$700
Note payable
$15,000
Schaubach, Capital
$9,000
Schaubach, Drawing
$36,000
Service revenue
$66,000
Depreciation expense
$5,500
Salary expense
$9,600
Utilities expense
$4,100
Insurance expense
$3,700
Supplies expense
$1,400
$110,900
$110,900
Explanation / Answer
Date Particulars Debit Credit January 1 Bank / Cash A/c Dr. $ 50,000 To 7% Bonds payable $ 50,000 ( Being 7% Bonds Issued)
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