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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 $9,200 Accounts receivable 30,200 Unearned revenue 2,940 Supplies 1,480 Equipment 10,500 Long-term note payable Common stock 47,100 200 Land 7,900 Additional paid-in capital 800 Building 24,500 Retained earnings 21,440 a. Rebuilt and delivered five pianos in January to customers who paid $18,700 in cash. b. Received a $550 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $840 for rent in January. d. Received $7,600 from customers as payment on their accounts. e. Received an electric and gas utility bill for $450 to be paid in February. f. Ordered $930 in supplies. g. Paid $1,540 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $1,000 tool (equipment) to use in the business in exchange for 130 shares of $1 par value stock. i. Paid $14,200 in wages to employees who worked in January. j. Declared and paid a $1,800 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). I. Paid $320 in interest expense on the long-term note payable.
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