2024 – ACCOUNTING MID TERM Michael s Plumbing Company has the following transactions for the year December

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.