Question: From the following transactions as well as additional data, please complete the entire accounting cycle for Mikes Plumbing of Prince Albert. (Use a chart of
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 201 14,000 3,200 2,600 60,900 210 235 301 302 11,000 401 80,000 501 11,000 505 32,000 510 12,000 8,000 515 $177,200 $177,200
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Date 2019 May 1 1 3 7 8 9 10 14 Cash Plumbing Equipment Mike Quinlan Capital Owner investment Prepaid Rent Cash Account Title and Description Paid rent in advance Office Equipment Accounts Payable Pur... View full answer
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