I know this is a long problem, but I have been struggling with it for days. Plea
ID: 2426337 • 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
Preparation of the summary transactions :
Cash
Beg. Bal
4,150
P & l A/c (Salaries)
32,300
P & l A/c-Sales(plumbing services)
16,500
Utilities
5,600
Accounts receivables
49,500
P & l A/c (Utilities)
6,700
Common stock issued
10,000
Retained earnings (dividends paid)
2,300
Advance from customer
8,600
End. Bal
41,850
Total
88,750
88,750
End. Bal
41,850
Accounts receivable
Beg. Bal
9,150
Cash
49,500
Sales
45,000
End. Bal
4,650
Total
54,150
54,150
End. Bal
4,650
Supplies
Beg. Bal
3,150
End. Bal
3,150
Total
3,150
3,150
End. Bal
3,150
Equipment
Beg. Bal
29,900
End. Bal
29,900
Total
29,900
29,900
End. Bal
29,900
Accumulated Deppreciation
Beg. Bal
6,600
End. Bal
6,600
Total
6,600
6,600
End. Bal
6,600
Accounts Payable
Beg. Bal
4,600
End. Bal
4,600
Total
4,600
4,600
End. Bal
4,600
Utilities Payable
Cash
5,600
Beg. Bal
5,600
End. Bal
0
Total
0
0
End. Bal
0
Common stock
Beg. Bal
19,500
Cash
10,000
End. Bal
29,500
Total
29,500
29,500
End. Bal
29,500
Retained Earnings
cash
2,300
Beg. Bal
9,150
End. Bal
6,850
Total
9,150
9,150
End. Bal
6,850
Profit and loss A/c ( P & lA/c)
Cash- Salaries
32,300
sales
45,000
Cash- Utilities
6,700
Cash sales
16,500
End. Bal
22,500
Total
61,500
61,500
End. Bal
22,500
Preparation of Unadjusted Trial Balance.
Trial Balance
Debit
Credit
Cash
41,850
Accounts receivable
4,650
Supplies
3,150
Equipment
29,900
Accumulated Deppreciation
6,600
Accounts Payable
4,600
Utilities Payable
0
Common stock
29,500
Retained Earnings
6,850
Advance from customer
8,600
P & L A/c
22,500
Suspense A/c (bal fig.)
900
Total
79,550
79,550
Cash
Beg. Bal
4,150
P & l A/c (Salaries)
32,300
P & l A/c-Sales(plumbing services)
16,500
Utilities
5,600
Accounts receivables
49,500
P & l A/c (Utilities)
6,700
Common stock issued
10,000
Retained earnings (dividends paid)
2,300
Advance from customer
8,600
End. Bal
41,850
Total
88,750
88,750
End. Bal
41,850
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