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




Question;Michael?s Plumbing Company has the following transactions for the yeara. December 1 ? Issued capital stock for $50,000 to start plumbing business.b. December 1 - Paid gas expense $500.c. December 1 - Paid one year insurance premium costing $3,600. d. December 2 - Received $3,000 for job to install plumbing system in January next year.e. December 8 ? Plumbing repairs for three houses totaling $15,000 and billed customers.f. December 10 - Purchased equipment costing $8,400 on credit.g. December 12 - Purchased supplies costing $900 on credit.h. December 23 ? Plumbing services completed and billed to customers for $1,500.i. December 24 - Paid for equipment purchased on December 10th.j. December 28 - Received $2,000 for the repairs done on December 8th.k. 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.


Paper#38789 | Written in 18-Jul-2015

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