Question
Need to know how to add these accounts into quickbooks online. What entry to debit and what to credit. Industry is plumbing, heating and air
Need to know how to add these accounts into quickbooks online. What entry to debit and what to credit.
Industry is plumbing, heating and air conditioning contractors, sell services and a sole proprietor. You have an accountant. You dont want to import data from Quickbooks or have W-2 employees. You get paid all methods. On December 1, 2017 Paula Petersen formed a corporation called Paulas Plumbing, Inc. to provide plumbing services for businesses and homeowners.
Dec. 1 Issued 20,000 shares of capital stock to Paula Petersen and other investors in exchange for a total of $40,000 cash.
Dec. 1 Paid $9,600 to Mages Realty for 12 months rent paid in advance. (Use the Asset account: Prepaid Rent for the entire amount).
Dec. 2 Purchased plumbing repair equipment and tools from Host Corp. for $15,000 (use the account Plumbing Equipment). Paid $5,000 in cash with the balance due on a Note Payable (principal and interest due in 6 months).
Dec. 4 Purchased office supplies on Account from Clousers for $1,000. Payment is due in 15 days. These supplies are expected to last for several months.
Dec. 5 Purchased a 6 month business Insurance Policy for $1,200 from the Seyler Agency (use the Asset account Unexpired Insurance for the entire amount).
Dec. 10 Received $4,000 cash from the Wink Apartment Complex in Dallas Township as advance payment for services to be provided. (Use the Liability account: Unearned Plumbing Fees.)
Dec. 16 Paid employee salaries for the first two weeks of December, $2,000.
Dec. 16 Earned $7,500 in fees for plumbing repairs completed in the first two weeks of December. $3,000 was received in cash and the remainder was billed to PPIs customers on Account (due in 10 days.)
Dec. 19 Paid the amount due to Clousers on account from the Dec. 4th purchase.
Dec. 26 Received amount due on account from the December 16th billing.
Dec. 30 Received a phone bill for the month of December from Sprint in the amount of $300. The amount is due on January 15, 2017.
Dec. 30 Declared a cash dividend of $.05 (5 cents) per share, payable on January 15, 2017.
Dec. 31 Earned $9,000 in fees for plumbing repairs provided for the second two weeks of December. $4,000 was received in cash and the remainder was billed to PPIs customers on Account (due in 12
days.)
Data for Adjusting entries
a. The advance payment for rent on December 1 covered a period of 12 months
b. The Insurance Policy is for 6 months
c. The annual interest rate on the Note Payable to Host, Corp. is 6%
d. The Plumbing Equipment is being depreciated by the straight-line method for a period of 5 years.
e. Office Supplies on hand on December 31 are estimated at $600
f. During December, PPI earned $1,000 of the plumbing fees paid in advance by Winks Apartment
Complex December 10th.
g. Salaries earned by employees since last payroll are $2,200. The Salaries will be paid on 1/3/15
h. The Accountant estimates that the amount of Income Tax Payable will be $2,500. These taxes will be
paid in 2017.
At The End: Profit and Loss $8,800
Balance Sheet Total Assets - $66,850
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started