Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

Step by Step Solution

There are 3 Steps involved in it

Step: 1

5a Income Statement for the Month Ended January 31 Revenues Cash Sales 18675 Accounts Receivable Sal... 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

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

5th edition

78025915, 978-1259115400, 1259115402, 978-0078025914

More Books

Students also viewed these Accounting questions