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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 Accounts Receivable Supplies Equipment Land Buildings $ 7,850 Accounts Payable 15,000 Deferred Revenue (deposits) $ 10,300 4,400 2,100 Notes Payable (long-term) 9,500 Common Stock 8,400 Retained Earnings 41,500 10,000 5,050 28,400 Following are the January transactions: a. Received a $690 deposit from a customer who wanted her piano rebuilt in February. b. Rented a part of the building to a bicycle repair shop; $350 rent received for January. c. Delivered five rebuilt pianos to customers who paid $15,050 in cash. d. Delivered two rebuilt pianos to customers for $7,700 charged on account. e. Received $6,350 from customers as payment on their accounts. f. Received an electric and gas utility bill for $765 for January services to be paid in February. g. Ordered $900 in supplies. h. Paid $2,450 on account in January. i. Paid $10,900 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. 4. Prepare an unadjusted trial balance at January 31. RICKY'S PIANO REBUILDING COMPANY Unadjusted Trial Balance At January 31 Account Name Cash Accounts Receivable Supplies Equipment Land Buildings Accounts Payable Deferred Revenue Notes Payable (long-term) Common Stock Retained Earnings Rent Revenue Service Revenue Utilities Expense Supplies Expense Salaries and Wages Expense Total Debit Credit $ 0 $ 0
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