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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 $ 8,150 Accounts Payable $ 12,200 Accounts Receivable 22,250 Deferred Revenue (deposits) 4,050 Supplies Equipment Land 3,000 Notes Payable (long-term) 8,700 Common Stock 8,850 Retained Earnings 45,000 14,000 5,600 Buildings 29,900 Following are the January transactions: a. Received a $665 deposit from a customer who wanted her plano rebuilt in February. b. Rented a part of the building to a bicycle repair shop: $685 rent received for January. c. Delivered five rebuilt planos to customers who paid $18,675 in cash. d. Delivered two rebuilt planos to customers for $9,600 charged on account. e. Received $8,000 from customers as payment on their accounts. 1. Received an electric and gas utility bill for $395 for January services to be paid in February. g. Ordered $1,255 in supplies. h. Paid $2,600 on account in January. 1. Paid $12,200 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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5a Income Statement for the Month Ended January 31 Revenues Cash Sales 18675 Accounts Receivable Sal...Get Instant Access to Expert-Tailored Solutions
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