The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:
Accounts Debits Credits
Cash $ 3,750
Accounts Receivable 8,750
Supplies 2,750
Equipment 21,000
Accumulated Depreciation $ 5,000
Accounts Payable 3,000
Utilities Payable 4,000
Deferred Revenue 0
Common Stock 15,500
Retained Earnings 8,750
Totals $ 36,250 $ 36,250
The following is a summary of the transactions for the year:
1. January 24 Provide plumbing services for cash, $12,500, and on account, $57,500.
2. March. 13 Collect on accounts receivable, $45,500.
3. May. 6 Issue shares of common stock in exchange for $10,000 cash.
4. June. 30 Pay salaries for the current year, $31,500.
5. September. 15 Pay utilities of $4,000 from 2020 (prior year).
6. November. 24 Receive cash in advance from customers, $7,000.
7. December. 30 Pay $1,500 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $5,000. Plumbing supplies remaining on hand at the end of the year equal $1,000. Of the $7,000 paid in advance by customers, $5,500 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,500.
- Questions:
1- Jan 24: Record plumbing services provided for cash, $12,500, and on account, $57,500.
2- March 13: Record the collection on accounts receivable, 45,500.
3- May 6: Record the issuance of shares of common stock in exchange for $10,000 cash.
4- June 30: Record the payment of salaries for the current year, $31,500.
5- September 15: Record the payment of utilities of $4,000 from 2020.
6- Nov 24: Record the cash received in advance from customers, $7,000.
7- December 30: Record payment of $1,500 cash dividends to stockholders.
8- December 31: Record the adjusting entry for depreciation.
9- December 31: Record the adjusting entry for supplies.
10- December 31: Record the adjusting entry for revenue earned. Of the $7,000 paid in advance by customers, $5,500 of the work has been completed by the end of the year.
11- December 31: Record the adjusting entry for accrued utilities. Accrued utilities at year-end amounted to $7,500.
12- December 31: Record the closing entry for revenue.
13- December 31: Record the closing entry for expenses.
14- December 31: Record the closing entry for cash dividends.