I know this is a long problem, but I have been struggling with it for days. Plea
ID: 2427637 • Letter: I
Question
I know this is a long problem, but I have been struggling with it for days. Please help as soon as possible! Thanks!
The general ledger of Pipers Plumbing at January 1, 2015, includes the following account balances:
Cash: 4,150 (debit)
Accounts Receivable: 9,150 (debit)
Supplies: 3,150 (debit)
Equipment: 29,900 (debit)
Accumulated Deppreciation: 6,600 (credit)
Accounts Payable: 4,600 (credit)
Utilities Payable: 5,600 (credit)
Unearned Revenue: 0 (credit)
Common Stock: 19,500 (credit)
Retained Earnings: 9,150 (credit)
Totals: 45,450 (debit) 45,450 (credit)
g. Pay $2,300 cash dividends to stockholders.
2. Prepare each of the summary transactions listed above.
3. Prepare an unadjusted trial balance.
4. Record adjusting entries. Depreciation for the year on the machinery is $6,600. Plumbing supplies remaining on hand at the end of the year equal $1,000. Of the $8,600 paid in advance by customers, $6,300 of the work has been completed by the end of the year.
5. Prepare an adjusted trial balance.
6. Prepare an income statement for the year ended December 31, 2015.
7. Prepare a classified balance sheet for the year ended December 31, 2015.
8. Record closing entries.
9. Prepare a post-closing trial balance.
The following is a summary of the transactions for the year: a. Provide plumbing services for cash, $16,500, and on account, $61,500. b. Collect on accounts receivable, $49,500. c. Issue shares of common stock in exchange for $10,000 cash. d. Pay salaries for the current year, $32,300. e. Pay for utilities expenses, $12,300, of which $5,600 represents costs for 2014. f. Receive cash in advance from customers, $8,600.g. Pay $2,300 cash dividends to stockholders.
2. Prepare each of the summary transactions listed above.
3. Prepare an unadjusted trial balance.
4. Record adjusting entries. Depreciation for the year on the machinery is $6,600. Plumbing supplies remaining on hand at the end of the year equal $1,000. Of the $8,600 paid in advance by customers, $6,300 of the work has been completed by the end of the year.
5. Prepare an adjusted trial balance.
6. Prepare an income statement for the year ended December 31, 2015.
7. Prepare a classified balance sheet for the year ended December 31, 2015.
8. Record closing entries.
9. Prepare a post-closing trial balance.
Explanation / Answer
DR CR Cash 16500 Account Receivable 61500 Service revenue 78000 Cash 49500 Account Receivable 49500 Cash 10000 Common stock 10000 Salaries Expense 32300 Cash 32300 Utility Expense 6700 Utilites Payable 5600 Cash 12300 Cash 8600 Unearned revenue 8600 Dividend 2300 Cash 2300 193000 193000 Un Adjusted Trial Balance DR CR Cash 41850 Accounts Receivable 21150 Supplies 3150 Equipment 29000 Accumulated Deppreciation 6600 Accounts Payable 4600 Utilities Payable Unearned Revenue 8600 Common Stock 29500 Retained Earnings 9150 Dividend 2300 Utility Expense 6700 Salaries Expense 32300 Service revenue 78000 136450 136450 DR CR Depreciation 6600 Accumulated Deppreciation 6600 Supplies Expense 2150 Supplies(3150-1000) 2150 Unearned revenue 6300 Service revenue 6300 Un Adjusted Trial Balance DR CR Cash 41850 Accounts Receivable 21150 Supplies 1000 Equipment 29000 Accumulated Deppreciation 13200 Accounts Payable 4600 Utilities Payable Unearned Revenue 2300 Common Stock 29500 Retained Earnings 9150 Dividend 2300 Utility Expense 6700 Salaries Expense 32300 Service revenue 84300 Depreciation 6600 Supplies Expense 2150 143050 143050