Required information

Skip to question

[The following information applies to the questions displayed below.]

The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	3,600
Accounts Receivable		8,600
Supplies		2,600
Equipment		18,000
Accumulated Depreciation					$	4,400
Accounts Payable						2,400
Utilities Payable						3,400
Deferred Revenue						0
Common Stock						14,000
Retained Earnings						8,600
Totals	$	32,800			$	32,800

The following is a summary of the transactions for the year:

1.		January		24		Provide plumbing services for cash, $11,000, and on account, $56,000.
2.		March		13		Collect on accounts receivable, $44,000.
3.		May		6		Issue shares of common stock in exchange for $10,000 cash.
4.		June		30		Pay salaries for the current year, $31,200.
5.		September		15		Pay utilities of $3,400 from 2020 (prior year).
6.		November		24		Receive cash in advance from customers, $6,400.
7.		December		30		Pay $1,200 cash dividends to stockholders.

The following information is available for the adjusting entries.

Depreciation for the year on the machinery is $4,400. Plumbing supplies remaining on hand at the end of the year equal $1,000. Of the $6,400 paid in advance by customers, $5,200 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,800.

9. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) There are 3 boxes!

Record the entry to close the revenue accounts.