Complete the full accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7) The following information applies to the questions displayed below. The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:
Accounts Debits Credits
Cash $ 4,000
Accounts Receivable 9,000
Supplies 3,000
Equipment 26,000
Accumulated Depreciation$ 6,000
Accounts Payable 4,000
Utilities Payable 5,000
Deferred Revenue 0
Common Stock 18,000
Retained Earnings 9,000
Totals $ 42,000 $ 42,000
The following is a summary of the transactions for the year:
1. January 24 Provide plumbing services for cash, $15,000, and on account, $60,000.
2. March 13 Collect on accounts receivable, $48,000.
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
4. June 30 Pay salaries for the current year, $32,000.
5. September 15 Pay utilities of $5,000 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $8,000.
7. December 30 Pay $2,000 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $6,000.
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Of the $8,000 paid in advance by customers, $6,000 of the work has been completed by the end of the year.
Accrued utilities at year-end amounted to $7,000.
Prepare the income statement for the year ended December 31 2021.
Prepare an adjusting trial balance.

Pipers Plumbing

a. Adjusted Trial Balance:

Cash                                  $46,000

Accounts Receivable          21,000

Supplies                                 1,000

Equipment                          26,000

Accumulated Depreciation                  $12,000

Accounts Payable                                    4,000

Utilities Payable                                       7,000

Deferred Revenue                                  2,000

Service Revenue                                   81,000

Common Stock                                    28,000

Retained Earnings                                 9,000

Salaries Expense               32,000

Dividends                             2,000

Depreciation Expense        6,000

Supplies Expense               2,000

Utilities Expense                 7,000

Totals                            $143,000 $143,000

Income Statement

For the year ended December 31, 2021

Service Revenue                                  $81,000

Salaries Expense               32,000

Depreciation Expense        6,000

Supplies Expense               2,000

Utilities Expense                 7,000        47,000

Net Income                                         $34,000

Retained Earnings                                  9,000

Dividends                                                2,000

Retained Earnings, Dec. 31, 2021      $41,000

Explanation:

a) Data and Calculations:

Account balances:

Accounts                     Debits     Credits

Cash                        $ 4,000

Accounts Receivable 9,000

Supplies                     3,000

Equipment               26,000

Accumulated Depreciation     $ 6,000

Accounts Payable                       4,000

Utilities Payable                          5,000

Deferred Revenue                     0

Common Stock                         18,000

Retained Earnings                     9,000

Totals                  $ 42,000  $ 42,000

T-accounts:

Cash

Date       Accounts              Debits     Credits

Jan. 1     Balance                $ 4,000

Jan. 24  Service Revenue   15,000

Mar. 13   Accts Receivable 48,000

May 6    Common Stock     10,000

June 30 Salaries                                $32,000

Sept. 15 Utilities                                     5,000

Nov. 24 Deferred Revenue 8,000

Dec. 30 Dividends                                 2,000

Dec. 31  Balance                               $46,000

Accounts Receivable

Date       Accounts                Debits     Credits

Jan. 1      Balance                $ 9,000

Jan. 24   Service Revenue 60,000

Mar. 13   Cash Account                       $48,000

Dec. 31  Balance                                  $21,000

Supplies

Date       Accounts              Debits     Credits

Jan. 1      Balance              $ 3,000

Dec. 31   Supplies Expense                $2,000

Dec. 31   Balance                                 $1,000

Equipment

Date       Accounts              Debits     Credits

Jan. 1      Balance            $ 26,000

Accumulated Depreciation

Date       Accounts              Debits     Credits

Jan. 1      Balance                               $ 6,000

Dec. 31   Depreciation                          6,000

Dec. 31   Balance              $12,000

Accounts Payable

Date       Accounts              Debits     Credits

Jan. 1      Balance                               $ 4,000

Utilities Payable

Date       Accounts              Debits     Credits

Jan. 1      Balance                               $ 5,000

Sept. 15  Cash                   $5,000

Dec. 31   Utilities Expense                    7,000

Dec. 31   Balance              $7,000

Deferred Revenue

Date       Accounts              Debits     Credits

Jan. 1      Balance                                 $ 0

Nov. 24  Cash                                       8,000

Dec. 31   Service Revenue $6,000

Dec. 31  Balance                   2,000

Service Revenue

Date       Accounts              Debits     Credits

Jan. 24   Cash Account                    $15,000

Jan. 24   Accounts Receivable          60,000

Dec. 31   Deferred Revenue                6,000

Dec. 31   Income Statement $81,000

Common Stock

Date       Accounts              Debits     Credits

Jan. 1   Balance                                 $ 18,000

May 6  Cash                                        10,000

Dec. 31 Balance               $28,000

Retained Earnings

Date       Accounts              Debits     Credits

Jan. 1   Balance                                 $ 9,000

Salaries Expense

Date       Accounts              Debits     Credits

June 30 Cash                   $32,000

Dividends

Date       Accounts              Debits     Credits

Dec. 30  Cash                   $2,000

Depreciation Expense

Date       Accounts              Debits     Credits

Dec 31   Acc Depreciation $6,000

Supplies Expense

Date       Accounts              Debits     Credits

Dec 31    Supplies             $2,000

Utilities Expense

Date       Accounts              Debits     Credits

Dec 31    Utilities Payable $7,000

answer; /// the above statement is (false);