Question
Required information E3-13 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]
Required information
E3-13 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.]
Rickys 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 | $ | 5,900 | Accounts Payable | $ | 12,750 | ||
Accounts Receivable | 17,250 | Deferred Revenue (deposits) | 4,150 | ||||
Supplies | 2,600 | Notes Payable (long-term) | 42,500 | ||||
Equipment | 13,100 | Common Stock | 13,000 | ||||
Land | 9,350 | Retained Earnings | 5,800 | ||||
Building | 30,000 | ||||||
Following are the January transactions:
- Received a $705 deposit from a customer who wanted her piano rebuilt in February.
- Rented a part of the building to a bicycle repair shop; $640 rent received for January.
- Delivered five rebuilt pianos to customers who paid $17,525 in cash.
- Delivered two rebuilt pianos to customers for $9,200 charged on account.
- Received $6,800 from customers as payment on their accounts.
- Received an electric and gas utility bill for $475 for January services to be paid in February.
- Ordered $1,025 in supplies.
- Paid $3,200 on account in January.
- Paid $11,900 in wages to employees in January for work done this month.
- Received and paid cash for the supplies in (g).
-----
* Prepare journal entries for the above January transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
* Post the journal entries to the T-accounts. Show the unadjusted beginning and ending balances in the T-accounts.
* Prepare an unadjusted trial balance at January 31.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started