From the following transactions as well as additional data, please complete the entire accounting cycle for Mikes

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From the following transactions as well as additional data, please complete the entire accounting cycle for Mike’s Plumbing of Prince Albert. (Use a chart of accounts similar to the one in Problem P5-1A on page 222). 

2019 May 

1 To open the business, Mike Quinlan invested $10,000 cash and $7,400 worth of plumbing equipment. 

1 Paid rent for four months in advance, $1,980. 

3 Purchased office equipment on account from MacKenzie Co., $3,800. 

7 Bought plumbing supplies, $1,645. 8 Collected $3,600 for plumbing services provided. 

9 Mike paid his home utility bill with a company cheque, $122. 

10 Billed Western Construction Co. for plumbing fees earned but not to be received until later, $9,600. 

14 Advertising bill was received from ABCD Radio Co. but is not to be paid until next month, $420. 

21 Received cheque from Western Construction Co. in partial payment of transaction dated May 10, $4,800. 

28 Paid MacKenzie Co. one-half of amount owed for office equipment, $1,900. 

31 Paid telephone bill of company, $184. 

31 Received bill from George’s Cleaning to be paid in June, $215. 

31 Paid salaries to employees, $4,100. 

Adjusting Data 

a. Plumbing supplies remaining at month-end were $328. 

b. One month’s rent expired in May. 

c. Depreciation on office equipment uses the straight-line method, a life of five years, and a residual value of $500. 

d. Depreciation of plumbing equipment also uses the straight-line method, a life of three years, and zero residual value. 

e. Salaries accrued amounted to 20% of the salaries paid on May 31. 


Data From Problem P5-1A

Acct # Account Name Dr. Cr. 101 Cash $ 8,200 103 Accounts Receivable 24,000 Equipment Accumulated Depreciation, Equipment 110 41,000 111 $ 16,500 130 Land 30,000 Accounts Payable Wages Payable Loan Payable T. Murray, Capital T. Murray, Withdrawals Plumbing Fees Earned Depreciation Expense, Equipment Wages Expense Insurance Expense Advertising Expense

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Related Book For  book-img-for-question

College Accounting A Practical Approach

ISBN: 978-0134166698

13th Canadian edition

Authors: Jeffrey Slater, Debra Good

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