Comprehensive review of the entire accounting cycle, Chapters 1-5 0 (175 min) Check Figure Net Income $5,388.44 P5-2C. From the following transactions as well as additional data, please complete the entire accounting cycle for Mike's Plumbing of Prince Albert. (Use a chart of accounts similar to the one in Problem P5-1A on page 228.) 2022 May 1 To open the business, Mike Quinlan invested $10,000 cash and $7,400 worth of plumbing equipment. 1 Paid rent for four months in advance, $1,980. 3 Purchased office equipment on account from MacKenzie Co., $3,800. 7 Bought plumbing supplies, $1,645. 8 Collected $3,600 for plumbing services provided. 9 Mike paid his home utility bill with a company cheque, $122. Billed Western Construction Co. for plumbing fees earned but not to be received until later, $9,600. 10 14 21 28 Advertising bill was received from ABCD Radio Co. but is not to be paid until next month, $420. Received cheque from Western Construction Co. in partial payment of transaction dated May 10, $4,800. Paid MacKenzie Co. one-half of amount owed for office equip ment, $1,900. 31 Paid telephone bill of company, $184. 31 31 Received bill from George's Cleaning to be paid in June, $215. Paid salaries to employees, $4,100. Adjusting Data a. Plumbing supplies remaining at month-end were $328. b. One month's rent expired in May. c. Depreciation on office equipment uses the straight-line method, a life of five years, and a residual value of $500. d. Depreciation of plumbing equipment also uses the straight-line method, a life of three years, and zero residual value. e. Salaries accrued amounted to 20% of the salaries paid on May 31.
Comprehensive review of the entire accounting cycle, Chapters 1-5 0 (175 min) Check Figure Net Income $5,388.44 P5-2C. From the following transactions as well as additional data, please complete the entire accounting cycle for Mike's Plumbing of Prince Albert. (Use a chart of accounts similar to the one in Problem P5-1A on page 228.) 2022 May 1 To open the business, Mike Quinlan invested $10,000 cash and $7,400 worth of plumbing equipment. 1 Paid rent for four months in advance, $1,980. 3 Purchased office equipment on account from MacKenzie Co., $3,800. 7 Bought plumbing supplies, $1,645. 8 Collected $3,600 for plumbing services provided. 9 Mike paid his home utility bill with a company cheque, $122. Billed Western Construction Co. for plumbing fees earned but not to be received until later, $9,600. 10 14 21 28 Advertising bill was received from ABCD Radio Co. but is not to be paid until next month, $420. Received cheque from Western Construction Co. in partial payment of transaction dated May 10, $4,800. Paid MacKenzie Co. one-half of amount owed for office equip ment, $1,900. 31 Paid telephone bill of company, $184. 31 31 Received bill from George's Cleaning to be paid in June, $215. Paid salaries to employees, $4,100. Adjusting Data a. Plumbing supplies remaining at month-end were $328. b. One month's rent expired in May. c. Depreciation on office equipment uses the straight-line method, a life of five years, and a residual value of $500. d. Depreciation of plumbing equipment also uses the straight-line method, a life of three years, and zero residual value. e. Salaries accrued amounted to 20% of the salaries paid on May 31.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter4: Completing The Accounting Cycle
Section: Chapter Questions
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Transcribed Image Text:Comprehensive review of the
entire accounting cycle,
Chapters 1-5
0 (175 min)
Check Figure
Net Income $5,388.44
P5-2C. From the following transactions as well as additional data, please complete the
entire accounting cycle for Mike's Plumbing of Prince Albert. (Use a chart of
accounts similar to the one in Problem P5-1A on page 228.)
2022
May 1 To open the business, Mike Quinlan invested $10,000 cash and
$7,400 worth of plumbing equipment.
1 Paid rent for four months in advance, $1,980.
3
Purchased office equipment on account from MacKenzie Co.,
$3,800.
7
Bought plumbing supplies, $1,645.
8
Collected $3,600 for plumbing services provided.
9 Mike paid his home utility bill with a company cheque, $122.
Billed Western Construction Co. for plumbing fees earned but not
to be received until later, $9,600.
10
14
21
28
Advertising bill was received from ABCD Radio Co. but is not to
be paid until next month, $420.
Received cheque from Western Construction Co. in partial
payment of transaction dated May 10, $4,800.
Paid MacKenzie Co. one-half of amount owed for office equip
ment, $1,900.
31
Paid telephone bill of company, $184.
31
31
Received bill from George's Cleaning to be paid in June, $215.
Paid salaries to employees, $4,100.
Adjusting Data
a. Plumbing supplies remaining at month-end were $328.
b. One month's rent expired in May.
c. Depreciation on office equipment uses the straight-line method, a life of five
years, and a residual value of $500.
d. Depreciation of plumbing equipment also uses the straight-line method, a
life of three years, and zero residual value.
e. Salaries accrued amounted to 20% of the salaries paid on May 31.
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