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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 $ 6,900 30,300 Accounts payable $ 8,800 Unearned revenue 3,740 Supplies 1,470 Equipment 10,400 Long-term note payable Common stock 47,700 196 Land Building 7,700 24,300 Additional paid-in capital Retained earnings 784 19,850 a. Rebuilt and delivered five pianos in January to customers who paid $18,800 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 $820 for rent in January. d. Received $7,700 from customers as payment on their accounts. e. Received an electric and gas utility bill for $500 to be paid in February. f. Ordered $860 in supplies. g. Paid $1,240 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $980 tool (equipment) to use in the business in exchange for 140 shares of $1 par value stock. i. Paid $14,100 in wages to employees who worked in January. j. Declared and paid a $2,300 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 0 Operating expenses: Total operating expenses 0 Other item: $ 0
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