Required information E3-10 (Algo) Analyzing the Effects of Transactions in T-Accounts and Computing Cash Basis versus...

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Required information 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 $ 6,800 Accounts payable $ 9,400 Accounts receivable 30,400 Unearned revenue 3,740. Supplies 1,470 Equipment 10,600 Long-term note payable Common stock 47,300 1,680 Land Building 7,300 26,900 Additional paid-in capital Retained earnings 6,720 14,630 a. Rebuilt and delivered five pianos in January to customers who paid $19,100 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 $840 for rent in January. d. Received $7,800 from customers as payment on their accounts. e. Received an electric and gas utility bill for $430 to be paid in February. f. Ordered $920 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 120 shares of $1 par value stock. i. Paid $14,200 in wages to employees who worked in January. j. Declared and paid a $1,800 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). E3-10 Part 3 3. Using the data from the T-accounts, amounts for the following at the end of January of the year, were: Revenues $ 19,940 Expenses Net income $ 19,940 Assets =Liabilities Stockholders' equity erences E3-10 Part 4 4. What is net income if Stacey's used the cash basis of accounting? Net income Required information 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 $ 6,800 Accounts payable $ 9,400 Accounts receivable 30,400 Unearned revenue 3,740. Supplies 1,470 Equipment 10,600 Long-term note payable Common stock 47,300 1,680 Land Building 7,300 26,900 Additional paid-in capital Retained earnings 6,720 14,630 a. Rebuilt and delivered five pianos in January to customers who paid $19,100 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 $840 for rent in January. d. Received $7,800 from customers as payment on their accounts. e. Received an electric and gas utility bill for $430 to be paid in February. f. Ordered $920 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 120 shares of $1 par value stock. i. Paid $14,200 in wages to employees who worked in January. j. Declared and paid a $1,800 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). E3-10 Part 3 3. Using the data from the T-accounts, amounts for the following at the end of January of the year, were: Revenues $ 19,940 Expenses Net income $ 19,940 Assets =Liabilities Stockholders' equity erences E3-10 Part 4 4. What is net income if Stacey's used the cash basis of accounting? Net income