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 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 adjusting entries. 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. 11. Prepare a post-closing trial balance.

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	$	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 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 adjusting entries.

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.

11. Prepare a post-closing trial balance.

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