Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accrual Basis Net Income LO3-3, 3-4 [The following information applies to the questions displayed below.] Stacey's Piano Rebuilding Company has been operating for one

image text in transcribed

Accrual Basis Net Income LO3-3, 3-4 [The following information applies to the questions displayed below.] 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 $ 6,300 Accounts payable $ 9,500 Accounts receivable 30,800 Unearned revenue 3,540 Supplies 1,450 Long-term note payable 47,300 Equipment 10,200 Common stock 1,580 Land Building 7,300 27,300 Additional paid-in capital 6,320 Retained earnings 15,110 a. Rebuilt and delivered five pianos in January to customers who paid $18,400 in cash. b. Received a $570 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $880 for rent in January. d. Received $8,200 from customers as payment on their accounts. e. Received an electric and gas utility bill for $490 to be paid in February. f. Ordered $890 in supplies. g. Paid $1,540 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $980 tool (equipment) to use in the business in exchange for 140 shares of $1 par value stock. i. Paid $14,700 in wages to employees who worked in January. j. Declared and paid a $2,300 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). E3-10 Part 1 and 2 Required: 1 & 2. Enter the following transactions for January of the second year into the T-accounts, using the letter of each transaction as the

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting the basis for business decisions

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

16th edition

978-0078111044

Students also viewed these Accounting questions