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 Accounts receivable Supplies Equipment Land Building 6,800 30, 200 1,470 9,800 7,800 27,200 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings $ 9, 100 3,640 47,800 1,560 6,240 14,930 a. Rebuilt and delivered five pianos in January to customers who paid $19,300 in cash. b. Received a $580 deposit from a customer who wanted her piano rebuilt. C. Rented a part of the building to a bicycle repair shop; received $870 for rent in January. d. Received $7,600 from customers as payment on their accounts. Received an electric and gas utility bill for $430 to be paid in February. f. Ordered $930 in supplies. g. Paid $1,540 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $910 tool (equipment) to use in the business in exchange for 150 shares of $1 par value stock. i. Paid $14,700 in wages to employees who worked in January. j. Declared and paid a $2,100 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). Cash Accounts Receivable 6,800 Beg. Bal. 30,200 Beg. Bal. (a) 19,300 7,600 (d) (b) 580 930 (k) 1,540 (9) 14,700 (0) 2,1000) 870 End. Bal. 22,600 (c) (d) 7,600 End. Bal. 15,880 Supplies 1,470 Equipment 9,800 Beg. Bal. Beg. Bal. (k) 930 (h) 910 End. Bal. 2,400 End. Bal. 10,710 Land Building 27,200 Beg. Bal. 7,800 Beg. Bal. End. Bal. 7,800 End. Bal. 27,200 Unearned Revenue Beg. Bal. Accounts Payable 9,100 1,540 Beg. Bal. 3,640 (9) 580 (b) End. Bal. 7,560 End. Bal. 4,220 Common Stock Long-term Note Payable 47,800 Beg. Bal. Beg. Bal. 1,560 150 (h) End. Bal. 47,800 End. Bal. 1,710 Additional Paid-in Capital 6,240 760 (h) Retained Earnings 14,930 Beg. Bal. Beg. Bal. 6) 2,100 End. Bal. 7,000 End. Bal. 12,830 Rebuilding Fees Revenue Rent Revenue Beg. Bal. Beg. Bal. 19,300 (a) 870 (c) End. Bal. 19,300 End. Bal. 870 Wages Expense Utilities Expense Beg. Bal. Beg. Bal. (0) 14,700 430 End. Bal. 14,700 End. Bal. 430 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 = Liabilities + Stockholders' equity 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 Accounts receivable Supplies Equipment Land Building 6,800 30, 200 1,470 9,800 7,800 27,200 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings $ 9, 100 3,640 47,800 1,560 6,240 14,930 a. Rebuilt and delivered five pianos in January to customers who paid $19,300 in cash. b. Received a $580 deposit from a customer who wanted her piano rebuilt. C. Rented a part of the building to a bicycle repair shop; received $870 for rent in January. d. Received $7,600 from customers as payment on their accounts. Received an electric and gas utility bill for $430 to be paid in February. f. Ordered $930 in supplies. g. Paid $1,540 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $910 tool (equipment) to use in the business in exchange for 150 shares of $1 par value stock. i. Paid $14,700 in wages to employees who worked in January. j. Declared and paid a $2,100 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). Cash Accounts Receivable 6,800 Beg. Bal. 30,200 Beg. Bal. (a) 19,300 7,600 (d) (b) 580 930 (k) 1,540 (9) 14,700 (0) 2,1000) 870 End. Bal. 22,600 (c) (d) 7,600 End. Bal. 15,880 Supplies 1,470 Equipment 9,800 Beg. Bal. Beg. Bal. (k) 930 (h) 910 End. Bal. 2,400 End. Bal. 10,710 Land Building 27,200 Beg. Bal. 7,800 Beg. Bal. End. Bal. 7,800 End. Bal. 27,200 Unearned Revenue Beg. Bal. Accounts Payable 9,100 1,540 Beg. Bal. 3,640 (9) 580 (b) End. Bal. 7,560 End. Bal. 4,220 Common Stock Long-term Note Payable 47,800 Beg. Bal. Beg. Bal. 1,560 150 (h) End. Bal. 47,800 End. Bal. 1,710 Additional Paid-in Capital 6,240 760 (h) Retained Earnings 14,930 Beg. Bal. Beg. Bal. 6) 2,100 End. Bal. 7,000 End. Bal. 12,830 Rebuilding Fees Revenue Rent Revenue Beg. Bal. Beg. Bal. 19,300 (a) 870 (c) End. Bal. 19,300 End. Bal. 870 Wages Expense Utilities Expense Beg. Bal. Beg. Bal. (0) 14,700 430 End. Bal. 14,700 End. Bal. 430 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 = Liabilities + Stockholders' equity 4. What is net income if Stacey's used the cash basis of accounting? Net income