POST ACC111 MIDTEM EXAM

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.