Posted: February 5th, 2019
Post ACC111 midterm exam
ACCOUNTING MID TERM
Michaelâs
Plumbing Company has the following transactions for the year
December
1 â Issued capital stock for $50,000 to start plumbing business.
December
1 – Paid gas expense $500.
December
1 – Paid one year insurance premium costing $3,600.
December
2 – Received $3,000 for job to install plumbing system in January next
year.
December
8 â Plumbing repairs for three houses totaling $15,000 and billed
customers.
December
10 – Purchased equipment costing $8,400 on credit.
December
12 – Purchased supplies costing $900 on credit.
December
23 â Plumbing services completed and billed to customers for $1,500.
December
24 – Paid for equipment purchased on December 10th.
December
28 – Received $2,000 for the repairs done on December 8th.
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.