# 7

Rickys Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:

Cash	$	6,300		Accounts Payable	$	8,850
Accounts Receivable		31,000		Deferred Revenue (deposits)		4,450
Supplies		2,550		Notes Payable (long-term)		49,000
Equipment		12,300		Common Stock		12,500
Land		9,150		Retained Earnings		12,500
Building		26,000

Following are the January transactions:

1. Received a $760 deposit from a customer who wanted her piano rebuilt in February.
2. Rented a part of the building to a bicycle repair shop; $785 rent received for January.
3. Delivered five rebuilt pianos to customers who paid $21,475 in cash.
4. Delivered two rebuilt pianos to customers for $10,500 charged on account.
5. Received $8,100 from customers as payment on their accounts.
6. Received an electric and gas utility bill for $600 for January services to be paid in February.
7. Ordered $1,120 in supplies.
8. Paid $2,250 on account in January.
9. Paid $15,900 in wages to employees in January for work done this month.
10. Received and paid cash for the supplies in (g).

3. Post the journal entries to the T-accounts. Show the unadjusted beginning and ending balances in the T-accounts.