Question
Beethoven's Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had
Beethoven's 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 $ 7,800 Accounts Payable $ 9,800 Accounts Receivable 30,400 Deferred Revenue (deposits) 3,740 Supplies 1,740 Notes Payable 54,400 Equipment 9,800 Contributed Capital 9,800 Land 7,800 Retained Earnings 10,800 Building 31,000 Requirement 1: 30mks Prepare journal entries for the following January transactions, using the letter of each transaction as a reference: (If no entry is required for a transaction/event, write "No journal entry required".) a) Received a $680 deposit from a customer who wanted her piano rebuilt in February. b) Rented a part of the building to a bicycle repair shop; $390 rent received for January. c) Delivered five rebuilt pianos to customers who paid $18,100 in cash. d) Delivered two rebuilt pianos to customers for $8,800 charged on account. e) Received $7,800 from customers as payment on their accounts. f) Received a utility bill for $530 for January services to be paid in February. g) Ordered $1,160 in supplies. h) Paid $2,240 to suppliers on account in January. i) Paid $19,000 in wages to employees in January for work done this month. j) Received and paid cash for the supplies in (g). Requirement 2: 25mks Post the journal entries to the T-accounts and show the ending balances in the T-accounts. Requirement 3: 25mks Use the balances in the completed T-accounts to prepare a trial balance at the end of January. Requirement 4: 20mks Prepare an income statement for the month ended January 31, 2023
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