Refer to E3-10. E3-10 Stacey's Piano Rebuilding Company has been operating for one year. At the start
Question:
Refer to E3-10.
E3-10
Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:
Cash.............................$ 6,400
Accounts receivable...... 32,000
Supplies........................ 1,500
Equipment..................... 9,500
Land........................... 7,400
Building ...................... 25,300
Accounts payable............. $ 9,600
Unearned revenue ............ 3,840
Long-term note payable...... 48,500
Common stock................ 1,600
Additional paid-in capital.... 7,000
Retained earnings ............. 11,560
Required:
Use the ending balances in the T-accounts in E3-10 to prepare in good form an income statement for January of the second year (ignore income taxes).
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Financial Accounting
ISBN: 978-1259222139
9th edition
Authors: Robert Libby, Patricia Libby, Frank Hodge