Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi can anyone help me with this accounting question? Stacey's Piano Rebuilding Company has been operating for one year (2016). At the start of 2017,
Hi can anyone help me with this accounting question?
Stacey's Piano Rebuilding Company has been operating for one year (2016). At the start of 2017, its statement of earnings accounts had zero balances and the account balances on its statement of financial position were as follows: $ Cash Accounts receivable Supplies Equipment Land Building $ 10,000 Accounts payable 50,000 Deferred revenue (deposits) 2,400 Note payable (due in three years) 16,000 Contributed capital 12,000 Retained earnings 64,000 16,000 6,400 80,000 16,000 36,000 Required: 1&2. Enter the following January 2017 transactions in the T-accounts, using the letter of each transaction as the reference: a. Received a $600 deposit from a customer who wanted her piano rebuilt. b. Rented a part of the building to a bicycle repair shop; received $820 for rent in January. c. Rebuilt and delivered five pianos to customers who paid $18,400 in cash. d. Received $7,200 from customers as payment on their accounts. e. Received an electric and gas utility bill for $520 to be paid in February. f. Ordered $960 in supplies. g. Paid $2,140 on account to suppliers. h. Received from Sam Mensa, the major shareholder, a $920 tool (equipment) to use in the business in exchange for the company's shares. i. Paid $15,000 in wages to employees for work in January. j. Declared and paid a cash dividend of $2,600. k. Received and paid for the supplies ordered in (f). Cash Accounts receivables Beg. bal. Beg. bal. End.bal. End. bal. Supplies Equipment Beg. bal. Beg. bal. End. bal. End. bal. Land Building Beg. bal. Beg. bal. End. bal. End. bal. Accounts payable Deferred Revenue (deposits) Beg. bal. Beg. bal. End. bal. End. bal. Note Payable Contributed Capital Beg. bal. Beg. bal. End. bal. End. bal. Retained Earnings Rebuilding Fees Revenue Beg. bal. Beg. bal. End. bal. End. bal. Rent Revenue Wages Expense Beg. bal. Beg. bal. End, bal. End. bal. Utilities Expense Beg. bal. End. bal. 3. Using the data from the T-accounts, complete the following equations. Revenues - Expenses = Net earnings Assets Liabilities Shareholders' Equity 4. Calculate the company's net earnings for January by using the cash basis of accounting. Net earnings 5. Calculate the return on assets using the accrual basis of accounting for January 2017. (Round the final answer to 2 decimal places.) Return on assetsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started