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Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and

Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:

Cash $6,900 Accounts payable $8,800
Accounts receivable 30,000 Unearned revenue 3,540
Supplies 1,540 Long-term note payable 47,500
Equipment 10,300 Common stock 192
Land 7,600 Additional paid-in capital 768
Building 26,300 Retained earnings 21,840

Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash.

Received a $600 deposit from a customer who wanted her piano rebuilt.

Rented a part of the building to a bicycle repair shop; received $900 for rent in January.

Received $7,400 from customers as payment on their accounts.

Received an electric and gas utility bill for $440 to be paid in February.

Ordered $960 in supplies.

Paid $1,740 on account in January.

Received from the home of Stacey Eddy, the major shareholder, a $960 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock.

Paid $14,000 in wages to employees who worked in January.

Declared and paid a $2,000 dividend (reduce Retained Earnings and Cash).

Received and paid cash for the supplies in (f).

Paid $320 in interest expense on the long-term note payable.

Required:

Prepare an unadjusted classified income statement for January of the second year (ignore income taxes).

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