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Required information E3-13 (Algo) Recording and Posting Accrual Basis Journal Entries, and Preparing an Unadjusted Trial Balance and Preliminary Financial Statements [LO 3-2, 3-3,
Required information E3-13 (Algo) Recording and Posting Accrual Basis Journal Entries, and Preparing an Unadjusted Trial Balance and Preliminary Financial Statements [LO 3-2, 3-3, LO 3-4] [The following information applies to the questions displayed below.] Ricky's Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts Receivable Supplies Equipment Land Buildings $ 6,950 Accounts Payable 24,000 Deferred Revenue (deposits) 2,250 Notes Payable (long-term) 10,200 Common Stock $9,350 4,850 47,750 9,500 7,550 Retained Earnings 11,300 31,800 Following are the January transactions: a. Received a $550 deposit from a customer who wanted her plano rebuilt in February b. Rented a part of the building to a bicycle repair shop: $400 rent received for January c. Delivered five rebuilt planos to customers who paid $16,975 in cash. d. Delivered two rebuilt planos to customers for $8,900 charged on account. e. Received $6,850 from customers as payment on their accounts. f. Received an electric and gas utility bill for $375 for January services to be paid in February g. Ordered $1,170 in supplies. h. Paid $1,650 on account in January. 1. Paid $17,900 in wages to employees in January for work done this month. J. Received and paid cash for the supplies in (g)
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