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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 Accounts receivable Supplies Equipment Land Building $6,300 Accounts payable $9,100 30,300 Unearned revenue 3,140 1,470 10,000 Long-term note payable Common stock 47,900 194 8,100 26,300 Additional paid-in capital 776 Retained earnings 21,360 a. Rebuilt and delivered five pianos in January to customers who paid $18,900 in cash. b. Received a $580 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $880 for rent in January. d. Received $7,300 from customers as payment on their accounts. e. Received an electric and gas utility bill for $420 to be paid in February. f. Ordered $860 in supplies. g. Paid $1,740 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 100 shares of $1 par value stock. i. Paid $14,100 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). 1. 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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