Required information [The following information applies to the questions displayed below.) The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Credits Debits $ 4,100 9,100 3,100 28,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $ 6,400 4,400 5,400 0 19,000 9,100 $44,300 $44,300 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $16,000, and on account, $61,000. 2. March 13 Collect on accounts receivable, $49,000. 3. May 6 Issue shares of common stock in exchange for $12,000 cash. 4. June 30 Pay salaries for the current year, $32,200. 5. September 15 Pay utilities of $5,400 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $8,400. 7. December 30 Pay $2,200 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $6,400. Plumbing supplies remaining on hand at the end of the year equal $1,200. Of the $8,400 paid in advance by customers, $6,200 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $6,800. 2. Prepare each of the summary transactions listed above. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No Date Credit 1 January 24 General Journal Cash Accounts Receivable Service Revenue Debit 16,000 61,000 77,000 March 13 Cash Accounts Receivable oss so so 49,000 49,000 May 06 12,000 Cash Common Stock 12,000 June 30 32,200 Salaries Expense Cash 32,200 5 5,400 September 0 Utilities Payable Cash 5,400 sos November 24 Cash 8,400 Deferred Revenue 8,400 7 December 30 Dividends 2,2009 Cash 2,200 4. Prepare an unadjusted trial balance. Credit 3,100 PIPERS PLUMBING Unadjusted Trial Balance December 31, 2021 Accounts Debit Cash $ 49,700 Accounts Receivable 21,100 Supplies Equipment 28,000 Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Dividends 2,200 Service Revenue Salaries Expense 32,200 Utilities Expense Supplies Expense Depreciation Expense 6,400 4,400 8,400 31,000 9,100 77,000 Totals 136,300 $ 136,300 5. Record adjusting entries. Depreciation for the year on the machinery is $6,400. Plumbing supplies remaining on hand at the end of the year equal $1,200. Of the $8,400 paid in advance by customers, $6,200 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $6,800. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No Credit Date General Journal December 31 Depreciation Expense Accumulated Depreciation Debit 6,400 6,400 2 1,900 December 31 Supplies Expense Supplies 1,900 solo 3 December 31 Deferred Revenue 6,200 Service Revenue 6,2007 6,800 December 31 Utilities Expense Utilities Payable 6,800 7. Prepare an adjusted trial balance. PIPERS PLUMBING Adjusted Trial Balance December 31, 2021 Accounts Debit Credit Cash $ 49,700 Accounts Receivable 21,100 Supplies 1,200 Equipment 28,000 Accumulated 12,800 Depreciation Accounts Payable 4,400 Utilities Payable 6,800 Deferred Revenue 2,200 Common Stock 31,000 Retained Earnings 9, 100 Dividends 2,200 Service Revenue 83,200 Salaries Expense 32,200 Utilities Expense 6,800 Supplies Expense 1,900 Depreciation Expense 6,400 Totals $ 149,500 $ 149,500 9. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No Credit Date General Journal December 31 Service Revenue Debit 83,200 Retained Earnings 83,200 2 47,300 December 31 Retained Earnings Depreciation Expense Salaries Expense Utilities Expense Supplies Expense So soos o 6,400 32,200 6,800 1,900 2,200 December 31 Retained Earnings Dividends 2,200 11. Prepare a post-closing trial balance. X Answer is complete but not entirely correct. Credit PIPERS PLUMBING Post-Closing Trial Balance December 31, 2021 Accounts Debit Cash $49,700 Accounts Receivable 21,100 Supplies 1,200 Equipment 28,000 Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Dividends Service Revenue Salaries Expense Utilities Expense Supplies Expense Depreciation Expense Total 12,800 4,400V 6,800 2,200 31,000 42,800 IX 400,000 100,000 * 8-a. Prepare an income statement for the year ended December 31, 2021. PIPERS PLUMBING Income Statement For the Year Ended December 31, 2021 Service Revenue $ 83,200 Expenses: Salaries Expense Supplies Expense Depreciation Expense Utilities Expense 32,200 1,900 6,400 6,800 Total expenses Net Income 47,300 $ 35,900 8-b. Prepare a classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) Assets Current Assets: Cash Accounts Receivable Supplies PIPERS PLUMBING Balance Sheet December 31, 2021 Liabilities Current Liabilities: $ 49,700 Accounts Payable 21,100 Deferred Revenue 1,200 Utilities Payable 4,400 2,200 6,800 72,000 13,400 Total current assets Long-term Assets: Equipment Accumulated Depreciation Total Current Liabilities Stockholder's Equity Retained Earnings Common Stock 28,000 (12,800L 42,800 31,000 73.800 Total Assets $ 87,200 Total Stockholder's Equity Total Liabilities and Stockholders' Equity $ 87,200 Explanation 8-b. Retained earnings = Beginning retained earnings + Net income - Dividends = $9,100 + $35,900 - $2,200 = $42,800 1., 3., 6 & 10. Post the transactions, adjusting entries and closing entries to the T-accounts. Be sure to include beginning balances. Cash Beg. Beg. 4,100 16,000 49,000 12,000 8,400 0 49,700 0 2,200g. 0 0 32,200d 5,400e. Accounts Receivable 9,100 0 61,000 49,000b 0 0 0 21,100 - O End. Bal. Bal. Beg. Bal. Supplies 3,1000 0 1 1,900 0 0 1,200 Adj 2. Equipment 28,000 0 0 28,000 0 0 0 End. Bal. Beg. Bal Accumulated Depreciation 0 6,400 0 6,400 Adj 1. 0 12,800 Accounts Payable 4,400 00 0 4,400 End. Bal. Beg. 0 Bal. Bal. e. Utilities Payable 0 5,400 5,4001 6,800 0 0 6,800 Adj 4. Deferred Revenue 0 8,400 6 ,200 2,200 f. Adj 3 End. Bal. Bal Beg. Bal Common Stock 0 19,000 0 12,000C. 0 0 0 0 31,000 Beg. Bal. Cl. entry Cl. entry Retained Earnings 0 9,100 2,200 83,200 47,300 0 0 Cl. entry OT End. Bal. End. Bal. 42,800 Dividends Beg. g. 0 2,200 2,200Cl. entry 00 0 0 Service Revenue 0 0 0 77,000 0 6 ,200 83,2000 a Adi 3. Cl. entry End. End. Bal. Bal. Beg. Beg. Bal. 0 Bal. Accumulated Depreciation 6,400 6,400 Adj 1. 0 0 12,800 06 Accounts Payable 4,400 10 10 4,400 End. Bal. Ball Utilities Payable Beg. Beg. Bal. Bal. e. 0 5,400 15,400 16,800 Adj 4. TOTO 6,800 Deferred Revenue 0 0 8 ,400 6,200 2,200 f. Adj 3. End. End. Bal. Beg. Bal. Common Stock 19,000 0 12,000C. 0 0 0 0 31,000 Beg. Bal. Cl. entry Cl. entry Retained Earnings 9,100 2,200 83,200Cl. entry 47,300 0 0 0 End Bal. End. Bal. 42,800 Dividends Service Revenue Beg. 0 0 Bal. g. 2,200 0 101 2,200 0 cl. entry 0 0 | 83,2000 77,000 6,200 Adj 3.si End. Bal. Cl. entry End. Bal. Beg. Bal. 0 Salaries Expense 0 0 3 2,200 32,200 Beg. Bal. Adj 4. Utilities Expense 0 6,800 6,800 0 0 Cl. entry CI. entry d. End. End. Bal. Bal. Supplies Expense Depreciation Expense Beg. Bal. 0 0 0 1,900 Beg. Bal. Adj 1. Adj 2. 1,900 Cl. entry 6,400 6,400Cl. entry End. End. Bal. Bal