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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 Accounts receivable Supplies Equipment Land Building $ 6,200 Accounts payable $ 9,300 30,400 Unearned revenue 3,440 1,510 Long-term note 47,900 payable 10, 200 Common stock 186 7,900 Additional paid- in capital 744 27,500 Retained earnings 22,140 a. Rebuilt and delivered five pianos in January to customers who paid $18,900 in cash. b. Received a $520 deposit from a customer who wanted her piano rebuilt. C. Rented a part of the building to a bicycle repair shop; received $870 for rent in January. d. Received $7,600 from customers as payment on their accounts. e. Received an electric and gas utility bill for $440 to be paid in February. f. Ordered $940 in supplies. g. Paid $1,440 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $930 tool (equipment) to use in the business in exchange for 150 shares of $1 par value stock. i. Paid $14,500 in wages to employees who worked in January. j. Declared and paid a $2,400 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). Required: Prepare an unadjusted classified income statement for January of the second year (ignore income taxes). STACEY'S PIANO REBUILDING COMPANY Income Statement (unadjusted) Operating revenues: Total operating revenues Operating expenses: Total operating expenses Other item
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