E3-10 (Algo) Analyzing the Effects of Transactions in T-Accounts and Computing Cash Basis versus 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 Accounts receivable Supplies Equipment Land Building $ 7,200 30,700 1,500 10,300 7.680 26,700 Accounts payable Unearned revenue Long-tern note payable Common stock Additional paid-in capital Retained earnings $9,100 3,840 47.400 1,580 6,320 15,760 2. Rebuilt and delivered five pianos in January to customers who paid $19,300 in cash. b. Received a $560 deposit from a customer who wanted her plano rebuilt c. Rented a part of the building to a bicycle repair shop; recelved $860 for rent in January d. Received $7,900 from customers as payment on their accounts e. Received an electric and gas utility bill for $520 to be paid in February Ordered $890 in supplies 9. Pald $1,640 on account in January h. Received from the home of Stacey Eddy, the major shareholder, a $990 tool (equipment to use in the business in exchange for 130 shares of $1 par value stock 1. Paid $14,900 in wages to employees who worked in January, 1. Declared and paid a $2,100 dividend (reduce Retained Earnings and Cash). k Received and paid cash for the supplies in (9) E3-10 Part 4 4. What is net income if Stacey's used the cash basis of accounting? Net income