Answered step by step
Verified Expert Solution
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,
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 $ 6,950 Accounts Payable $ 9,350 Accounts Receivable 24,000 Deferred Revenue (deposits) 4,850 Supplies Equipment 2,250 Notes Payable (long-term) 10,200 Common Stock 47,750 9,500 Land 7,550 Retained Earnings 11,300 Buildings 31,800 Following are the January transactions: a. Received a $550 deposit from a customer who wanted her piano rebuilt in February. b. Rented a part of the building to a bicycle repair shop; $400 rent received for January c. Delivered five rebuilt pianos to customers who paid $16,975 in cash. d. Delivered two rebuilt pianos 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. i. Paid $17,900 in wages to employees in January for work done this month. J. Received and paid cash for the supplies in (g). 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 31.1
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