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Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-8B (continued)
Requirement 7
Pipers Plumbing
Adjusted Trial Balance
December 31, 2021
Accounts
Debit
Credit
Cash
$ 55,500
Accounts Receivable
21,500
Supplies
1,100
Chapter 3 - The Accounting Cycle: End of the Period
3-102 Financial Accounting, 5e
Problem 3-8B (continued)
Requirement 8
Pipers Plumbing
Income Statement
For the year ended December 31, 2021
Service revenue
$92,000
Expenses:
Pipers Plumbing
Balance Sheet
December 31, 2021
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$55,500
Accounts payable
$ 6,000
Accounts receivable
21,500
Utilities payable
6,000
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-8B (continued)
Requirement 9
December 31
Debit
Credit
Service Revenue
92,000
Retained Earnings
92,000
(Close revenue accounts)
Problem 3-8B (continued)
Requirement 10 (closing entries posted in red)
Cash
Accounts Receivable
Supplies
4,500
20,000
33,000
9,500
65,000
53,000
3,500
2,400
Utilities Payable
Deferred Revenue
Common Stock
7,000
7,000
6,000
7,000
0
10,000
23,000
11,000
6,000
3,000
34,000
Retained Earnings
Dividends
Service Revenue
9,500
0
0
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-8B (concluded)
Requirement 11
Pipers Plumbing
Post-Closing Trial Balance
December 31, 2021
Accounts
Debit
Credit
Cash
$ 55,500
Accounts Receivable
21,500
Supplies
1,100
3-106 Financial Accounting, 5e
Problem 3-9B (LO 3-3, 3-4, 3-5, 3-6, 3-7)
Requirement 1
Cash
Accounts Receivable
Supplies
41,500
25,700
0
41,500
25,700
0
Retained Earnings
Dividends
Service Revenue
32,700
0
0
32,700
0
0
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-9B (continued)
Requirement 2
(1) January 12
Debit
Credit
Accounts Receivable
62,400
Service Revenue
62,400
(Provide services on account)
(2) February 25
Debit
Credit
Cash
75,300
Supplies
12,100
Accounts Payable
12,100
(Purchase supplies on account)
(6) July 7
Debit
Credit
Accounts Payable
11,300
Cash
11,300
(Pay cash on account)
(7) September 30
Debit
Credit
Chapter 3 - The Accounting Cycle: End of the Period
3-108 Financial Accounting, 5e
Problem 3-9B (continued)
Requirement 3 (entries posted in red)
Cash
Accounts Receivable
Supplies
41,500
11,300
25,700
0
Land
Accounts Payable
Salaries Payable
110,800
11,300
15,300
12,100
0
110,800
16,100
0
Salaries Expense
Advertising Expense
Interest Expense
0
64,200
0
22,500
0
64,200
22,500
0
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-9B (continued)
Requirement 4
Jackrabbit Rentals
Unadjusted Trial Balance
December 31, 2021
Accounts
Debit
Credit
Cash
$ 91,600
Accounts Receivable
42,400
Supplies
12,100
Land
110,800
Requirement 5
December 31
Debit
Credit
Interest Expense
2,500
Interest Payable
2,500
(Accrue interest on notes payable)
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-9B (continued)
Requirement 6 (adjusted entries posted in red)
Cash
Accounts Receivable
Supplies
41,500
75,300
45,700
30,000
11,300
64,200
22,500
2,900
25,700
62,400
45,700
0
12,100
9,800
91,600
42,400
2,300
Retained Earnings
Dividends
Service Revenue
32,700
0
2,900
0
62,400
75,300
32,700
2,900
137,700
Salaries Expense
Advertising Expense
Interest Expense
Problem 3-9B (continued)
Requirement 7
Jackrabbit Rentals
Adjusted Trial Balance
December 31, 2021
Accounts
Debit
Credit
Cash
$ 91,600
Accounts Receivable
42,400
Supplies
2,300
Land
110,800
Accounts Payable
$ 16,100
Chapter 3 - The Accounting Cycle: End of the Period
3-112 Financial Accounting, 5e
Problem 3-9B (continued)
Requirement 8
Jackrabbit Rentals
Income Statement
For the year ended December 31, 2021
Service revenue
$137,700
Expenses:
Jackrabbit Rentals
Balance Sheet
December 31, 2021
Assets
Liabilities
Current assets:
Current liabilities:
Cash
$ 91,600
Accounts Payable
$ 16,100
Accounts Receivable
42,400
Salaries Payable
1,500
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-9B (continued)
Requirement 9
December 31
Debit
Credit
Service Revenue
137,700
Retained Earnings
137,700
(Close revenue accounts)
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-9B (continued)
Requirement 10 (closing entries posted in red)
Cash
Accounts Receivable
Supplies
41,500
75,300
45,700
30,000
11,300
64,200
22,500
2,900
25,700
62,400
45,700
0
12,100
9,800
91,600
42,400
2,300
Retained Earnings
Dividends
Service Revenue
100,500
2,900
32,700
137,700
0
2,900
2,900
137,700
0
62,400
75,300
67,000
0
0
Chapter 3 - The Accounting Cycle: End of the Period
Problem 3-9B (concluded)
Requirement 11
Jackrabbit Rentals
Post-Closing Trial Balance
December 31, 2021
Accounts
Debit
Credit
Cash
$ 91,600
Accounts Receivable
42,400
Chapter 3 - The Accounting Cycle: End of the Period
3-116 Financial Accounting, 5e
ADDITIONAL PERSPECTIVES
Additional Perspective 3-1
Requirement 1
July 1, 2021
Debit
Credit
Cash
10,000
Cash
4,800
(Purchase one-year insurance policy)
July 2, 2021
Legal Fees Expense
1,500
Cash
1,500
(Pay legal fees for incorporation)
