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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 $ 6,300 Accounts payable $ 9,100 Accounts receivable 30,800 Unearned revenue 3,840 Supplies 1,530 Long-term note payable 48,000 Equipment 10,400 Common stock 192 Land 8,100 Additional paid-in capital 768 Building 26,300 Retained earnings 21,530 Rebuilt and delivered five pianos in January to customers who paid $18,400 in cash. Received a $560 deposit from a customer who wanted her piano rebuilt. Rented a part of the building to a bicycle repair shop; received $860 for rent in January. Received $7,800 from customers as payment on their accounts. Receivean electric and gas utility bill for $450 to be paid in February Ordered $950 in supplies. Paid $1,540 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 120 shares of $1 par value stock. Paid $14,400 in wages to employees who worked in January. Declared and paid a $2,500 dividend (reduce Retained Earnings and Cash). Received and paid cash for the supplies in (f). Paid $330 in interest expense on the long-term note payable. Prepare an unadjusted classified income statement for January of the second year (ignore income taxes)
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