Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7) [The following information applies to the questions displayed below.]
The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:
AccountsDebits Credits
Cash$3,950
Accounts Receivable 8,950
Supplies 2,950
Equipment 25,000
Accumulated Depreciation $5,800
Accounts Payable 3,800
Utilities Payable 4,800
Deferred Revenue 0
Common Stock 17,500
Retained Earnings 8,950
Totals $40,850 $40,850
The following is a summary of the transactions for the year:
1. January 24 Provide plumbing services for cash, $14,500, and on account, $59,500.
2. March 13 Collect on accounts receivable, $47,500.
3. May 6 Issue shares of common stock in exchange for $12,000 cash.
4. June 30 Pay salaries for the current year, $31,900.
5. September 15 Pay utilities of $4,800 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $7,800.
7. December 30 Pay $1,900 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $5,800. Plumbing supplies remaining on hand at the end of the year equal $1,200. Of the $7,800 paid in advance by customers, $5,900 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,100
Problem 3-8B Part 9
9. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
check_circle