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 $ 8,600 Accounts receivable 30,500 Unearned revenue 3,340 Supplies 1,460 Long-term note payable 47,600 Equipment 10,100 Common stock 1,700 Land 7,700 Additional paid-in capital 6,800 Building 27,200 Retained earnings 15,820 Rebuilt and delivered five pianos in January to customers who paid $18,400 in cash. Received a $530 deposit from a customer who wanted her piano rebuilt. Rented a part of the building to a bicycle repair shop; received $890 for rent in January. Received $7,400 from customers as payment on their accounts. Received an electric and gas utility bill for $460 to be paid in February. Ordered $950 in supplies. Paid $1,240 on account in January. Received from the home of Stacey Eddy, the major shareholder, a $970 tool (equipment) to use in the business in exchange for 140 shares of $1 par value stock. Paid $14,900 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).

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 6,900 30,500 1,460 10,100 7,700 27,200 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings 8,600 3,340 47,600 1,700 6,800 15,820 a. Rebuilt and delivered five pianos in January to customers who paid $18,400 in cash. b. Received a $530 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $890 for rent in January. d. Received $7,400 from customers as payment on their accounts. e. Received an electric and gas utility bill for $460 to be paid in February. f. Ordered $950 in supplies. g. Paid $1,240 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $970 tool (equipment) to use in the business in exchange for 140 shares of $1 par value stock. i. Paid $14,900 in wages to employees who worked in January. j. Declared and paid a $2,500 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). 4. What is net income if Stacey's used the cash basis of accounting? Net income