The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 4,500 Accounts Receivable 9,500 Supplies 3,500 Equipment 36,000 Accumulated Depreciation $ 8,000 Accounts Payable 6,000 Utilities Payable 7,000 Deferred Revenue 0 Common Stock 23,000 Retained Earnings 9,500 Totals $ 53,500 $ 53,500
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:
| Accounts | Debits | Credits | |||||
| Cash | $ | 4,500 | |||||
| 9,500 | |||||||
| Supplies | 3,500 | ||||||
| Equipment | 36,000 | ||||||
| $ | 8,000 | ||||||
| Accounts Payable | 6,000 | ||||||
| Utilities Payable | 7,000 | ||||||
| Deferred Revenue | 0 | ||||||
| Common Stock | 23,000 | ||||||
| 9,500 | |||||||
| Totals | $ | 53,500 | $ | 53,500 | |||
The following is a summary of the transactions for the year:
| 1. | January | 24 | Provide plumbing services for cash, $20,000, and on account, $65,000. | |||
| 2. | March | 13 | Collect on accounts receivable, $53,000. | |||
| 3. | May | 6 | Issue shares of common stock in exchange for $11,000 cash. | |||
| 4. | June | 30 | Pay salaries for the current year, $33,000. | |||
| 5. | September | 15 | Pay utilities of $7,000 from 2020 (prior year). | |||
| 6. | November | 24 | Receive cash in advance from customers, $10,000. | |||
| 7. | December | 30 | Pay $3,000 cash dividends to stockholders. |
The following information is available for the
Depreciation for the year on the machinery is $8,000. Plumbing supplies remaining on hand at the end of the year equal $1,100. Of the $10,000 paid in advance by customers, $7,000 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $6,000.
8-a. Prepare an income statement for the year ended December 31, 2021.
8-b. Prepare a classified
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