The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances: AccountsDebits CreditsCash$4,500 Accounts Receivable 9,500 Supplies 3,500 Equipment 36,000 Accumulated Depreciation $8,000 Accounts Payable 6,000 Utilities Payable 7,000 Deferred Revenue 0 Common Stock 23,000 Retained Earnings 9,500 Totals$53,500 $53,500 The following is a summary of the transactions for the year: 1. January 24 Provide plumbing services for cash, $20,000, and on account, $65,000.2. March 13 Collect on accounts receivable, $53,000.3. May 6 Issue shares of common stock in exchange for $11,000 cash.4. June 30 Pay salaries for the current year, $33,000.5. September 15 Pay utilities of $7,000 from 2020 (prior year).6. November 24 Receive cash in advance from customers, $10,000.7. December 30 Pay $3,000 cash dividends to stockholders. The following information is available for the adjusting entries. Depreciation for the year on the machinery is $8,000. Plumbing supplies remaining on hand at the end of the year equal $1,100. Of the $10,000 paid in advance by customers, $7,000 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $6,000. 8-a. Prepare an income statement for the year ended December 31, 2021. 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.)

The income statement represents the net income of the company whereas, the balance sheet represents…

Answered: The general ledger of Pipers Plumbing…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 2PB: The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal...

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

Accounts	Debits		Credits
Cash	$	4,500
Accounts Receivable		9,500
Supplies		3,500
Equipment		36,000
Accumulated Depreciation				$	8,000
Accounts Payable					6,000
Utilities Payable					7,000
Deferred Revenue					0
Common Stock					23,000
Retained Earnings					9,500
Totals	$	53,500		$	53,500

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

1.	January	24	Provide plumbing services for cash, $20,000, and on account, $65,000.
2.	March	13	Collect on accounts receivable, $53,000.
3.	May	6	Issue shares of common stock in exchange for $11,000 cash.
4.	June	30	Pay salaries for the current year, $33,000.
5.	September	15	Pay utilities of $7,000 from 2020 (prior year).
6.	November	24	Receive cash in advance from customers, $10,000.
7.	December	30	Pay $3,000 cash dividends to stockholders.

The following information is available for the adjusting entries.

Depreciation for the year on the machinery is $8,000. Plumbing supplies remaining on hand at the end of the year equal $1,100. Of the $10,000 paid in advance by customers, $7,000 of the work has been completed by the end of the year. Accrued utilities at year-end amounted to $6,000.

8-a. Prepare an income statement for the year ended December 31, 2021.

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.)

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