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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 $7,100 Accounts payable $9,100 Accounts receivable 30,300 Unearned revenue 2,840 Supplies 1,520 Long-term note payable 47,800 Equipment 9,700 Common stock 188 Land 8,000 Additional paid-in capital 752 Building 26,000 Retained earnings 21,940 a. Rebuilt and delivered five pianos in January to customers who paid $18,400 in cash. b. Received a $500 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 $7,800 from customers as payment on their accounts. e. Received an electric and gas utility bill for $510 to be paid in February. f. Ordered $890 in supplies. g. Paid $1,340 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $940 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. i. Paid $14,100 in wages to employees who worked in January. j. Declared and paid a $1,900 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). I. Paid $350 in interest expense on the long-term note payable.
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