Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below. Ricky's Piano Rebuilding Company has been operating for one year. On January 1,

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Required information [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 $ 6,750 Accounts Payable $ 8,450 Accounts Receivable 23,250 Deferred Revenue (deposits) 3,150 Supplies 52,250 Equipment 10,500 Land 16,500 Buildings 1,250 Notes Payable (long-term) 17,700 Common Stock 10,700 Retained Earnings 31,200 Following are the January transactions: a. Received a $880 deposit from a customer who wanted her piano rebuilt in February. b. Rented a part of the building to a bicycle repair shop: $405 rent received for January. c. Delivered five rebuilt pianos to customers who paid $16,500 in cash. d. Delivered two rebuilt pianos to customers for $8,400 charged on account. e. Received $6,750 from customers as payment on their accounts. f. Received an electric and gas utility bill for $455 for January services to be paid in February. g. Ordered $1,270 in supplies. h. Paid $1,550 on account in January. L. Paid $11,300 in wages to employees in January for work done this month. j. Received and paid cash for the supplies in (g). 3. Post the journal entries to the T-accounts. Show the beginning and unadjusted ending balances in the T-accounts. Debit Beginning Balance Cash Ending Balance 0 Credit Supplies Debit Credit Beginning Balance Ending Balance Account Receivable Debit Credit Beginning Balance Ending Balance Equipment Debit Credit Beginning Balance Ending Balance 0 Land Building Debit Credit Debit Credit Beginning Balance Ending Balance 0 Beginning Balance Ending Balance Accounts Payable Deferred Revenue Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance 0 Ending Balance 0 Debit Beginning Balance Ending Balance Notes Payable 0 Credit Retained Earnings Debit Credit Beginning Balance Ending Balance 0 Common Stock Debit Credit Beginning Balance Ending Balance 0 Service Revenue Debit Credit Beginning Balance Ending Balance 0 Rent Revenue Salaries and Wages Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance 0 Utilites Expense Debit Credit Beginning Balance Ending Balance 0 Ending Balance 0 4. Prepare an unadjusted trial balance at January 31. Account Name RICKY'S PIANO REBUILDING COMPANY Unadjusted Trial Balance Debit Credit Total $ 0 $ 0 5-a. Prepare an income statement for the month ended and at January 31. 5-b. Prepare a statement of retained earnings for the month ended and at January 31. If there are no dividends, include a line that reports Dividends of zero. 5-c. Prepare a classified balance sheet at January 31.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions

Question

How does stock price maximization benefit society?

Answered: 1 week ago

Question

How are interest rates used to allocate capital among firms?

Answered: 1 week ago