ACCOUNTING MID TERM

Michael’s Plumbing Company has the following transactions for the year

1. December 1 – Issued capital stock for $50,000 to start plumbing business.

1. December 1 – Paid gas expense $500.

1. December 1 – Paid one year insurance premium costing $3,600.

1. December 2 – Received $3,000 for job to install plumbing system in January next year.

1. December 8 – Plumbing repairs for three houses totaling $15,000 and billed customers.

1. December 10 – Purchased equipment costing $8,400 on credit.

1. December 12 – Purchased supplies costing $900 on credit.

1. December 23 – Plumbing services completed and billed to customers for $1,500.

1. December 24 – Paid for equipment purchased on December 10th.

1. December 28 – Received $2,000 for the repairs done on December 8th.

1. December 31 – Paid a $1,000 dividend.

Required:

1. Prepare journal entries for the above transactions. Be sure to identify them as a through k.

2. Post the above transactions to T Accounts.

3. Prepare a Trial Balance.

4. Prepare adjusting entries in journal format and post to T Accounts.

Supplies on Hand December 31 was $500.

The Equipment is to be depreciated over 48 months starting with December.

(HINT: Record one month depreciation expense).

Wages owed but not paid on December 31 was $250.

One month of insurance has expired.

5. Prepare an Adjusted Trial Balance.

6. Prepare an Income Statement, Statement of Retained Earnings and a Balance Sheet.

7. Prepare closing entries in journal format and post to the T Accounts.

8. Prepare a Post-Closing Trial Balance.

John’s House Painting

John’s House Painting

	John’s House Painting			John’s House Painting
	Income Statement			Statement of Retained Earnings
	For the Year Ending December 31, 20XX			For the Year Ending December 31, 20XX…

ACCOUNTING MID TERM

Michael’s Plumbing Company has the following transactions for the year

1. December 1 – Issued capital stock for $50,000 to start plumbing business.

1. December 1 – Paid gas expense $500.

1. December 1 – Paid one year insurance premium costing $3,600.

1. December 2 – Received $3,000 for job to install plumbing system in January next year.

1. December 8 – Plumbing repairs for three houses totaling $15,000 and billed customers.

1. December 10 – Purchased equipment costing $8,400 on credit.

1. December 12 – Purchased supplies costing $900 on credit.

1. December 23 – Plumbing services completed and billed to customers for $1,500.

1. December 24 – Paid for equipment purchased on December 10th.

1. December 28 – Received $2,000 for the repairs done on December 8th.

1. December 31 – Paid a $1,000 dividend.

Required:

1. Prepare journal entries for the above transactions. Be sure to identify them as a through k.

2. Post the above transactions to T Accounts.

3. Prepare a Trial Balance.

4. Prepare adjusting entries in journal format and post to T Accounts.

Supplies on Hand December 31 was $500.

The Equipment is to be depreciated over 48 months starting with December.

(HINT: Record one month depreciation expense).

Wages owed but not paid on December 31 was $250.

One month of insurance has expired.

5. Prepare an Adjusted Trial Balance.

6. Prepare an Income Statement, Statement of Retained Earnings and a Balance Sheet.

7. Prepare closing entries in journal format and post to the T Accounts.

8. Prepare a Post-Closing Trial Balance.

John’s House Painting

John’s House Painting

	John’s House Painting			John’s House Painting
	Income Statement			Statement of Retained Earnings
	For the Year Ending December 31, 20XX			For the Year Ending December 31, 20XX…