Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown on February 1. The shop specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the store's financial records. The following transactions occurred in February, the first month of operations
Stacey's Plano 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 6,980 39,480 1,51e 18,000 7,800 26,980 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings 9,380 3,840 48, eee 1,660 6,640 14,070 a. Rebuilt and delivered five planos in January to customers who paid $18,500 in cash. b. Received a $520 deposit from a customer who wanted her plano rebuilt. c. Rented a part of the building to a bicycle repair shop, received $820 for rent in January. d. Received $7,700 from customers as payment on their accounts. e. Received an electric and gas utility bill for $450 to be paid in February. f. Ordered $870 in supplies. g. Paid $1,940 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. Pald $14.400 in wages to employees who worked in January. J. Declared and paid a $1,700 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (1) Cash Accounts Receivable Beg Bal 6.900 Beg. Bal. 30,400 End. Bal. 30,400 End. Bal 6,900 Supplies Equipment Beg 1,510 Beg. Bal. 10.000 Bal. End. Bal. 1,510 End. Bal. 10,000 Land Beg Bal. Building 26.000 7.800 Beg Bai. End. Bal 7.800 End. Bal. 26.900 Accounts Payable Unearned Revenue Beg Ball 9,300 Beg. Bal. 3,840 Accounts Payable Unearned Revenue Beg Bal. 9,300 Beg. Bal 3,840 End Bal 9,300 End. Bal. 3,840 Long-term Note Payable Common Stock Beg Beg. Bal 1,880 Bal. End. Bal. 0 End. Bal. 1,600 Additional Paid-in Capital Retained Earnings Beg 6,640 Beg Bal 14,070 Bal. End. Bal. 6,640 End. Bal. 14,070 Rebuilding Fees Revenue Rent Revenue Beg Bal Beg. Bal. End. 0 End. Bal. 0 Retained Earnings Additional Paid-in Capital 6,640 Beg Bal. Beg Bal 14,070 End. Bal. 6,640 End. Bal. 14,070 Rebuilding Fees Revenue Rent Revenue Beg Bal. Beg Bal End. Bal. 0 End. Bal. 0 Wages Expense Utilities Expense Beg Bal Beg Bal End Bal. 0 End. Bal. 0 3. Using the data from the T-accounts, amounts for the following at the end of January of the second year, were: Revenues Expenses = Net income Assets = Liabidities + Stockholders' equity Prepare an unadjusted classified Income statement for January of the second year Ignore Income taxes). STACEY'S PIANO REBUILDING COMPANY Income Statement (unadjusted) Operating revenues Total operating revenues Operating expenses: Total operating expenses 0 Other item: S Accounts Payable Unearned Revenue Beg Bal. 9,300 Beg. Bal 3,840 End Bal 9,300 End. Bal. 3,840 Long-term Note Payable Common Stock Beg Beg. Bal 1,880 Bal. End. Bal. 0 End. Bal. 1,600 Additional Paid-in Capital Retained Earnings Beg 6,640 Beg Bal 14,070 Bal. End. Bal. 6,640 End. Bal. 14,070 Rebuilding Fees Revenue Rent Revenue Beg Bal Beg. Bal. End. 0 End. Bal. 0
