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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 $6,900 Accounts payable $9,600 Accounts receivable 30,300 Unearned revenue 2,940 Supplies 1,470 Long-term note payable 47,700 Equipment 10,500 Common stock 190 Land 7,700 Additional paid-in capital 760 Building 25,700 Retained earnings 21,380 a. Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash. b. Received a $540 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $860 for rent in January. d. Received $7,600 from customers as payment on their accounts. e. Received an electric and gas utility bill for $430 to be paid in February. f. Ordered $940 in supplies. g. Paid $1,940 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $950 tool (equipment) to use in the business in exchange for 150 shares of $1 par value stock. i. Paid $14,500 in wages to employees who worked in January. j. Declared and paid a $2,400 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). I. Paid $310 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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