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E3-10 (Algo) Analyzing the Effects of Transactions in T-Accounts and Computing Cash Basis versus Accrual Basis Net Income LO3-3, 3-4

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	$	7,200	Accounts payable	$	9,300
Accounts receivable		30,600	Unearned revenue		2,940
Supplies		1,540	Long-term note payable		47,300
Equipment		9,600	Common stock		1,580
Land		8,200	Additional paid-in capital		6,320
Building		27,300	Retained earnings		17,000

a. Rebuilt and delivered five pianos in January to customers who paid $18,800 in cash.

b. Received a $530 deposit from a customer who wanted her piano rebuilt.

c. Rented a part of the building to a bicycle repair shop; received $850 for rent in January.

d. Received $7,600 from customers as payment on their accounts.

e. Received an electric and gas utility bill for $450 to be paid in February.

f. Ordered $930 in supplies.

g. Paid $1,440 on account in January.

h. Received from the home of Stacey Eddy, the major shareholder, a $980 tool (equipment) to use in the business in exchange for 130 shares of $1 par value stock.

i. Paid $14,900 in wages to employees who worked in January.

j. Declared and paid a $2,500 dividend (reduce Retained Earnings and Cash).

k. Received and paid cash for the supplies in (f).

Required:

1 & 2. Enter the following transactions for January of the second year into the T-accounts, using the letter of each transaction as the reference.