Respuesta :
Answer:
1. January 24 Provide plumbing services for cash, $15,000, and on account, $60,000.
Dr Cash 15,000
Dr Accounts receivable 60,000
Cr Service revenue 75,000
2. March 13 Collect on accounts receivable, $48,000.
Dr Cash 48,000
Cr Accounts receivable 48,000
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
Dr Cash 10,000
Cr Common stock 10,000
4. June 30 Pay salaries for the current year, $32,000.
Dr Wages expense 32,000
Cr Cash 32,000
5. September 15 Pay utilities of $5,000 from 2020 (prior year).
Dr Utilities payable 5,000
Cr Cash 5,000
6. November 24 Receive cash in advance from customers, $8,000.
Dr Cash 8,000
Cr Unearned revenue 8,000
7. December 30 Pay $2,000 cash dividends to stockholders.
Dr Dividends 2,000
Cr Cash 2,000
Adjusting entries:
Depreciation for the year on the machinery is $6,000.
Dr Depreciation expense 6,000
Cr Accumulated depreciation 6,000
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Dr Supplies expense 2,000
Cr Supplies 2,000
Of the $8,000 paid in advance by customers, $6,000 of the work has been completed by the end of the year.
Dr Unearned revenue 6,000
Cr Service revenue 6,000
Accrued utilities at year-end amounted to $7,000.
Dr Utilities expense 7,000
Cr Utilities payable 7,000
Pipers Plumbing
Trial balance
For the year ended December 31, 2021
debit credit
Cash $46,000
Accounts Receivable $21,000
Supplies $1,000
Equipment $26,000
Accumulated Depreciation $12,000
Accounts Payable $4,000
Utilities payable $7,000
Deferred Revenue $2,000
Common Stock $28,000
Retained Earnings $9,000
Service revenue $81,000
Wages expense $32,000
Depreciation expense $6,000
Supplies expense $2,000
Utilities expense $7,000
Dividends $2,000
Totals $143,000 $143,000
Pipers Plumbing
Income statement
For the year ended December 31, 2021
Service revenue $81,000
- Wages expense $32,000
- Depreciation expense $6,000
- Supplies expense $2,000
- Utilities expense $7,000 ($47,000)
Net income $34,000
Pipers Plumbing
Retained Earnings Statement
For the year ended December 31, 2021
Beginning balance January 1, 2021 $9,000
Net income $34,000
Subtotal $43,000
Dividends ($2,000)
Ending balance December 31, 2021 $41,000
Pipers Plumbing
Balance Sheet
For the year ended December 31, 2021
Assets:
Cash $46,000
Accounts Receivable $21,000
Supplies $1,000
Equipment, net $14,000
Total assets $82,000
Liabilities:
Accounts Payable $4,000
Utilities payable $7,000
Deferred Revenue $2,000
Total liabilities $13,000
Stockholders' Equity
Common Stock $28,000
Retained Earnings $41,000
Total stockholders' equity $69,000
Total liabilities + equity $82,000
