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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 and
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 $9,000 Accounts receivable 30,600 Unearned revenue 3,740 Supplies 1,470 Equipment 10,500 Long-term note payable Common stock 47,400 1,660 Land 8,200 Additional paid-in capital 6,640 Building 26,400 Retained earnings 15,630 a. Rebuilt and delivered five pianos in January to customers who paid $18,800 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 $840 for rent in January. d. Received $7,300 from customers as payment on their accounts. e. Received an electric and gas utility bill for $460 to be paid in February. f. Ordered $890 in supplies. g. Paid $1,940 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 140 shares of $1 par value stock. i. Paid $14,800 in wages to employees who worked in January. j. Declared and paid a $2,100 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). I. Paid $340 in interest expense on the long-term note payable. Debit Beginning Balance Ending Balance Cash Accounts Receivable Credit Debit Credit Beginning Balance Ending Balance Supplies Equipment Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Debit Beginning Balance Land Ending Balance Ending Balance Building Credit Debit Credit Beginning Balance Ending Balance Accounts Payable Debit Credit Beginning Balance Ending Balance Unearned Revenue Debit Credit Beginning Balance Ending Balance Long-term Note Payable Common Stock Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Additional Paid-in Capital Debit Beginning Balance Ending Balance Ending Balance Retained Earnings Credit Debit Credit Beginning Balance Ending Balance
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