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	$	6,400	Accounts payable	$	9,400
Accounts receivable		30,200	Unearned revenue		3,440
Supplies		1,480	Long-term note payable		47,500
Equipment		10,100	Common stock		1,600
Land		7,900	Additional paid-in capital		6,400
Building		26,700	Retained earnings		14,440

1. Rebuilt and delivered five pianos in January to customers who paid $19,200 in cash.
2. Received a $510 deposit from a customer who wanted her piano rebuilt.
3. Rented a part of the building to a bicycle repair shop; received $880 for rent in January.
4. Received $7,300 from customers as payment on their accounts.
5. Received an electric and gas utility bill for $460 to be paid in February.
6. Ordered $880 in supplies.
7. Paid $2,040 on account in January.
8. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 120 shares of $1 par value stock.
9. Paid $14,600 in wages to employees who worked in January.
10. Declared and paid a $2,000 dividend (reduce Retained Earnings and Cash).
11. Received and paid cash for the supplies in (f).

E3-10 Part 4

4. What is net income if Staceys used the cash basis of accounting?