Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7)
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 $ 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
The following is a summary of the transactions for the year:
1. January 24 Provide plumbing services for cash, $15,000, and on account, $60,000.
2. March 13 Collect on accounts receivable, $48,000.
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
4. June 30 Pay salaries for the current year, $32,000.
5. September 15 Pay utilities of $5,000 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $8,000.
7. December 30 Pay $2,000 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $6,000.
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Of the $8,000 paid in advance by customers, $6,000 of the work has been completed by the end of the year.
Accrued utilities at year-end amounted to $7,000.
Prepare the income statement for the year ended December 31 2021.
Prepare an adjusting trial balance.