The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 3,600 Accounts Receivable 8,600 Supplies 2,600 Equipment 18,000 Accumulated Depreciation $ 4,400 Accounts Payable 2,400 Utilities Payable 3,400 Deferred Revenue 0 Common Stock 14,000 Retained Earnings 8,600 Totals $ 32,800 $ 32,800 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $11,000, and on account, $56,000. 2. March 13 Collect on accounts receivable, $44,000. 3. May 6 Issue shares of common stock in exchange for $10,000 cash. 4. June 30 Pay salaries for the current year, $31,200. 5. September 15 Pay utilities of $3,400 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $6,400. 7. December 30 Pay $1,200 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $4,400. Plumbing supplies remaining on hand at the end of the year equal $1,000. Of the $6,400 paid in advance by customers, $5,200 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,800. Record the closing entry for revenue. Date General Journal Debit Credit December 31 Record the closing entry for expenses. Date General Journal Debit Credit December 31 Record the closing entry for cash dividends. Date General Journal Debit Credit December 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:

Accounts	Debits		Credits
Cash	$	3,600
Accounts Receivable		8,600
Supplies		2,600
Equipment		18,000
Accumulated Depreciation				$	4,400
Accounts Payable					2,400
Utilities Payable					3,400
Deferred Revenue					0
Common Stock					14,000
Retained Earnings					8,600
Totals	$	32,800		$	32,800

The following is a summary of the transactions for the year:

1.	January	24	Provide plumbing services for cash, $11,000, and on account, $56,000.
2.	March	13	Collect on accounts receivable, $44,000.
3.	May	6	Issue shares of common stock in exchange for $10,000 cash.
4.	June	30	Pay salaries for the current year, $31,200.
5.	September	15	Pay utilities of $3,400 from 2020 (prior year).
6.	November	24	Receive cash in advance from customers, $6,400.
7.	December	30	Pay $1,200 cash dividends to stockholders.

The following information is available for the adjusting entries.

Depreciation for the year on the machinery is $4,400. Plumbing supplies remaining on hand at the end of the year equal $1,000. Of the $6,400 paid in advance by customers, $5,200 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,800.

Record the closing entry for revenue.

Date	General Journal	Debit	Credit
December 31

Record the closing entry for expenses.
Date General Journal Debit Credit

December 31

Record the closing entry for cash dividends.

Date	General Journal	Debit	Credit
December 31

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