Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help completing assignment ACCOUNTING MID TERM Michael's Plumbing Company has the following transactions for the year a. December 1 - Issued capital stock for

Need help completing assignmentimage text in transcribed

ACCOUNTING MID TERM Michael's Plumbing Company has the following transactions for the year a. December 1 - Issued capital stock for $50,000 to start plumbing business. b. December 1 - Paid gas expense $500. c. December 1 - Paid one year insurance premium costing $3,600. d. December 2 - Received $3,000 for job to install plumbing system in January next year. e. December 8 - Plumbing repairs for three houses totaling $15,000 and billed customers. f. December 10 - Purchased equipment costing $8,400 on credit. g. December 12 - Purchased supplies costing $900 on credit. h. December 23 - Plumbing services completed and billed to customers for $1,500. i. December 24 - Paid for equipment purchased on December 10th. j. December 28 - Received $2,000 for the repairs done on December 8th. k. December 31 - Paid a $1,000 dividend. Required: 1. Prepare journal entries for the above transactions. Be sure to identify them as a through k. 2. Post the above transactions to T Accounts. 3. Prepare a Trial Balance. 4. Prepare adjusting entries in journal format and post to T Accounts. Supplies on Hand December 31 was $500. The Equipment is to be depreciated over 48 months starting with December. (HINT: Record one month depreciation expense). Wages owed but not paid on December 31 was $250. One month of insurance has expired. 5. Prepare an Adjusted Trial Balance. 6. Prepare an Income Statement, Statement of Retained Earnings and a Balance Sheet. 7. Prepare closing entries in journal format and post to the T Accounts. 8. Prepare a Post-Closing Trial Balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Information for creating and managing value

Authors: Kim Langfield Smith, David Smith, Paul Andon, Ronald Hilton, Helen Thorne

8th edition

9781760420413 , 978-1760420406

More Books

Students also viewed these Accounting questions