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, at

image 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: 6,300 Accounts Payable 31,000 Deferred Revenue (deposits) 2,550 Notes Payable (long-term) Cash 8,850 Accounts Receivable 4,450 49,000 12,500 Supplies Equipment Land 12,300 Common Stock 9,150 Retained Earnings 26,000 12,500 Building Following are the January transactions: a. Received a $760 deposit from a customer who wanted her piano rebuilt in February. b. Rented a part of the building to a bicycle repair shop, $785 rent received for January. c. Delivered five rebuilt pianos to customers who paid $21,475 in cash. d. Delivered two rebuilt pianos to customers for $10,500 charged on account. e. Received $8,100 from customers as payment on their accounts. f. Received an electric and gas utility bill for $600 for January services to be paid in February. g. Ordered $1,120 in supplies. h. Paid $2,250 on account in January. i. Paid $15,900 in wages to employees in January for work done this month. j. Received and paid cash for the supplies in (g) 4. Prepare an unadjusted trial balance at January 31. Answer is complete and correct. RICKY'S PIANO REBUILDING COMPANY Unadjusted Trial Balance At January 31 Account Name Cash Debit Credit $ 18,150 Accounts Receivable 33,400 3,670 Supplies Equipment Land 12,300 9,150 Buildings Accounts Payable Deferred Revenue Notes Payable (long-term) Service Revenue Rent Revenue 26,000 7,200 5,210 49,000 31,975 785 Salaries and Wages Expense Utilities Expense Common Stock 15,900 600 12,500 Retained Earnings 12,500 Total 119,170 119,170 Required information Answer is not complete. Complete this question by entering your answers in the tabs below. Req 5A Req 5B Req 5C Prepare an income statement for the month ended and at January 31. RICKY'S PIANO REBUILDING COMPANY Income Statement For the Month Ended January 31 Revenues Deferred Revenue 5,210 Rent Revenue 785 31,975 Service Revenue Total Revenues 37,970 Expenses Utilities Expense 600 Salaries and Wages Expense 15,900 Total Expenses 16,500 Net Income Rea 56 Rea 5A

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

Auditing Concepts For A Changing Environment

Authors: Larry E. Rittenberg, Bradley J. Schwieger

5th Edition

0324223102, 978-0324223101

More Books

Students also viewed these Accounting questions