Question

The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: Credits Debits $ 3,850 8,850 2,850 23,000 Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Utilities Payable Deferred Revenue Common Stock Retained Earnings Totals $ 5,400 3,400 4,400 0 16,500 8,850 $38,550 $38,550 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $13,500, and on account, $58,500. 2. March 13 Collect on accounts receivable, $46,500. 3. May 6 Issue shares of common stock in exchange for $11,000 cash. 4. June 30 Pay salaries for the current year, $31,700. 5. September 15 Pay utilities of $4,400 from 2020 (prior year). 6. November 24 Receive cash in advance from customers, $7,400. 7. December 30 Pay $1,700 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $5,400. Plumbing supplies remaining on hand at the end of the year equal $1,100. Of the $7,400 paid in advance by customers, $5,700 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $7,300.

Answer 1

Requirement 2: Prepare the summary transactions

Date	Account Title and Explanation	Debit	Credit
Jan 24	Cash	$13,500
	Accounts receivable	$58,500
	Service revenue		$72,000
	To record service revenue
Mar 13	Cash	$46,500
	Accounts receivable		$46,500
	To record accounts receivable collected
May 6	Cash	$11,000
	Common stock		$11,000
	To record common stock issued
June 30	Salaries expense	$31,700
	Cash		$31,700
	To record salaries expenses paid
Sep 15	Utilities payable	$4,400
	Cash		$4,400
	To record outstanding utilities paid
Nov 24	Cash	$7,400
	Deferred Revenue		$7,400
	To record service revenue received in advance
Dec 30	Dividends	$1,700
	Cash		$1,700
	To record cash dividends paid