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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
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 $ 6,000 Accounts Payable $ 8,000 Accounts Receivable 25,000 Deferred Revenue (deposits) 3,200 Supplies 1,200 Notes Payable (long-term) 40,000 Equipment 8,000 Common Stock 8,000 Land Buildings 6,000 Retained Earnings 22,000 9,000 Following are the January transactions: a. Received a $500 deposit from a customer who wanted her piano rebuilt in February. b. Rented a part of the building to a bicycle repair shop; $300 rent received for January. c. Delivered five rebuilt pianos to customers who paid $14,500 in cash. d. Delivered two rebuilt pianos to customers for $7,000 charged on account. e. Received $6,000 from customers as payment on their accounts. f. Received an electric and gas utility bill for $350 for January services to be paid in February. g. Ordered $800 in supplies. h. Paid $1,700 on account in January. i. Paid $10,000 in wages to employees in January for work done this month. j. Received and paid cash for the supplies in (g). Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet General Journal tab - Prepare the journal entries to record the transactions (a) through (j). Review the acc in the General Ledger and Trial Balance tabs. General Ledger tab - Each journal entry is posted automatically to the general ledger. Trial Balance tab - The ending balance values from the General Ledger tab flows through to the Trial Balanc Income Statement tab - Use the drop-down to select the accounts properly included on the income statem Statement of Retained Earnings tab - Prepare the statement of retained earnings for the month ended Jai Balance Sheet tab - Prepare a classified balance sheet at January 31.
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