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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 had
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 $ 6,900 Accounts Payable 25,250 Deferred Revenue (deposits) 1,350 Notes Payable (long-term) 15,300 Common Stock 6,900 Retained Earnings 22,700 $ 8,500 5,200 43,500 15,000 6,200 Following are the January transactions: a. Received a $865 deposit from a customer who wanted her piano rebuilt in February b. Rented a part of the building to a bicycle repair shop: $345 rent received for January c. Delivered five rebuilt pianos to customers who paid $11.925 in cash. d. Delivered two rebuilt pianos to customers for $6,800 charged on account. e. Received $4,800 from customers as payment on their accounts. f. Received an electric and gas utility bill for $440 for January services to be paid in February g. Ordered $995 in supplies. h. Paid $1,600 on account in January i. Paid $10,300 in wages to employees in January for work done this month. J. Received and paid cash for the supplies in (9). 3. Post the journal entries to the T-accounts. Show the beginning and unadjusted ending balances in the T-accounts Account Receivable Cash Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Supplies Equipment Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance 0 Ending Balance 0 Land Building Credit Debit Beginning Balance Debit Credit Beginning Balance Ending Balance Ending Balance Accounts Payable Deferred Revenue Credit Debit Beginning Balance Credit Debit Beginning Balance Ending Balance 0 Ending Balance 0 Notes Payable Common Stock Credit Debit Beginning Balance Debit Beginning Balance Credit Ending Balance 0 + Ending Balance 0 Retained Earnings Service Revenue Debit Beginning Balance Credit Debit Credit Beginning Balance
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