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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
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 Accounts payable 30,500 Unearned revenue $ 8,800 3,140 receivable Long-term note Supplies 1,510 payable 47,300 Equipment 9,900 Common stock 192 Land 7,300 Additional paid-in 768 capital Building 25,100 Retained earnings 20,510 a. Rebuilt and delivered five pianos in January to customers who paid $18,600 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 $850 for rent in January. d. Received $7,300 from customers as payment on their accounts. e. Received an electric and gas utility bill for $480 to be paid in February. f. Ordered $870 in supplies. g. Paid $2,040 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $960 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. i. Paid $14,600 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). I. Paid $340 in interest expense on the long-term note payable. 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 items: $ 4,030 Rebuilding fees revenue Inventory Land Miscellaneous expenses Rent expense Rent revenue Repairs expense Retained earnings Sales revenue Supplies Supplies expense Unearned revenue Utilities expense Notes payable (long-term) Notes payable (short-term) Other assets and intangibles Prepaid expenses Interest expense Interest revenue Operating lease right-of-use assets Other current assets Other noncurrent assets Retained earnings Short-term investments Wages expense Wages payable Cost of goods sold Equipment Cash Accounts payable Fuel expense Games revenue Insurance expense Above are the drop down options for the left side of the chart Commission expense Common stock Accounts receivable Additional paid-in-capital Consulting expense Advertising expense
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