Answer:
Pipers Plumbing
a. Adjusted Trial Balance:
Cash $46,000
Accounts Receivable 21,000
Supplies 1,000
Equipment 26,000
Accumulated Depreciation $12,000
Accounts Payable 4,000
Utilities Payable 7,000
Deferred Revenue 2,000
Service Revenue 81,000
Common Stock 28,000
Retained Earnings 9,000
Salaries Expense 32,000
Dividends 2,000
Depreciation Expense 6,000
Supplies Expense 2,000
Utilities Expense 7,000
Totals $143,000 $143,000
Income Statement
For the year ended December 31, 2021
Service Revenue $81,000
Salaries Expense 32,000
Depreciation Expense 6,000
Supplies Expense 2,000
Utilities Expense 7,000 47,000
Net Income $34,000
Retained Earnings 9,000
Dividends 2,000
Retained Earnings, Dec. 31, 2021 $41,000
Step-by-step explanation:
a) Data and Calculations:
Account balances:
Accounts Debits Credits
Cash $ 4,000
Accounts Receivable 9,000
Supplies 3,000
Equipment 26,000
Accumulated Depreciation $ 6,000
Accounts Payable 4,000
Utilities Payable 5,000
Deferred Revenue 0
Common Stock 18,000
Retained Earnings 9,000
Totals $ 42,000 $ 42,000
T-accounts:
Cash
Date Accounts Debits Credits
Jan. 1 Balance $ 4,000
Jan. 24 Service Revenue 15,000
Mar. 13 Accts Receivable 48,000
May 6 Common Stock 10,000
June 30 Salaries $32,000
Sept. 15 Utilities 5,000
Nov. 24 Deferred Revenue 8,000
Dec. 30 Dividends 2,000
Dec. 31 Balance $46,000
Accounts Receivable
Date Accounts Debits Credits
Jan. 1 Balance $ 9,000
Jan. 24 Service Revenue 60,000
Mar. 13 Cash Account $48,000
Dec. 31 Balance $21,000
Supplies
Date Accounts Debits Credits
Jan. 1 Balance $ 3,000
Dec. 31 Supplies Expense $2,000
Dec. 31 Balance $1,000
Equipment
Date Accounts Debits Credits
Jan. 1 Balance $ 26,000
Accumulated Depreciation
Date Accounts Debits Credits
Jan. 1 Balance $ 6,000
Dec. 31 Depreciation 6,000
Dec. 31 Balance $12,000
Accounts Payable
Date Accounts Debits Credits
Jan. 1 Balance $ 4,000
Utilities Payable
Date Accounts Debits Credits
Jan. 1 Balance $ 5,000
Sept. 15 Cash $5,000
Dec. 31 Utilities Expense 7,000
Dec. 31 Balance $7,000
Deferred Revenue
Date Accounts Debits Credits
Jan. 1 Balance $ 0
Nov. 24 Cash 8,000
Dec. 31 Service Revenue $6,000
Dec. 31 Balance 2,000
Service Revenue
Date Accounts Debits Credits
Jan. 24 Cash Account $15,000
Jan. 24 Accounts Receivable 60,000
Dec. 31 Deferred Revenue 6,000
Dec. 31 Income Statement $81,000
Common Stock
Date Accounts Debits Credits
Jan. 1 Balance $ 18,000
May 6 Cash 10,000
Dec. 31 Balance $28,000
Retained Earnings
Date Accounts Debits Credits
Jan. 1 Balance $ 9,000
Salaries Expense
Date Accounts Debits Credits
June 30 Cash $32,000
Dividends
Date Accounts Debits Credits
Dec. 30 Cash $2,000
Depreciation Expense
Date Accounts Debits Credits
Dec 31 Acc Depreciation $6,000
Supplies Expense
Date Accounts Debits Credits
Dec 31 Supplies $2,000
Utilities Expense
Date Accounts Debits Credits
Dec 31 Utilities Payable $7,000