The general ledger of Pipers Plumbing at January 1, 2024, includes the following account balances:

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 2023 (prior year).
6. November 24 Receive cash in advance from customers, $10,000.
7. December 30 Pay $3,000 cash dividends to stockholders.

Required:
1. Set up the necessary T-accounts and enter the beginning balances from the trial balance. In addition to the accounts shown, the company has accounts for Dividends, Service Revenue, Salaries Expense, Utilities Expense, Supplies Expense, and Depreciation Expense.
2. Record each of the summary transactions listed above.
3. Post the transactions to the accounts.
4. Prepare an unadjusted trial balance.
5. Record 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.
6. Post adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare an income statement for 2024 and a classified balance sheet as of December 31, 2024.
9. Record closing entries.
10. Post closing entries
11. Prepare a post-closing trial balance.

Transcribed Image Text:

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