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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
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 Accounts Receivable Supplies Equipment Land Buildings $ 6,750 Accounts Payable 23,250 Deferred Revenue (deposits) 1,250 Notes Payable (long-term) 17,700 Common Stock 10,700 Retained Earnings 31,200 $ 8,450 3,150 52,250 10,500 16,500 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 i. Paid $11,300 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
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