Question
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 $6,600 Accounts payable $8,900 Accounts receivable 30,400 Unearned revenue 3,440 Supplies 1,490 Long-term note payable 47,800 Equipment 10,200 Common stock 194 Land 7,400 Building 24,800 Additional paid-in capital Retained earnings 776 19,780 a. Rebuilt and delivered five planos in January to customers who paid $18,700 in cash. b. Received a $590 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $910 for rent in January. d. Received $7,500 from customers as payment on their accounts. e. Received an electric and gas utility bill for $440 to be paid in February. f. Ordered $900 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 150 shares of $1 par value stock. 1. Paid $14,700 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 (). 1. 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).
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