Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stacey's Piano Rebuilding Company has been operating for one year (2019). At the start of 2020, its statement of earnings accounts had zero balances and

image text in transcribedimage text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Stacey's Piano Rebuilding Company has been operating for one year (2019). At the start of 2020, its statement of earnings accounts had zero balances and the account balances on its statement ofnancial position were as follows: Cash $ 10,000 Accounts payable $ 10,000 Accounts receivable 50,000 Deferred revenue (deposits) 0,400 Supplies 2,400 Note payable (due in three years) 00,000 Equipment 03,000 Contributed capital l8,000 Land 12,000 Retained earnings 30,000 Building 64,000 Required: 1&2 Enter the following January 2020 transactions in the Taccounts, using the letter of each transaction as the reference: 3. Received a $600 deposit from a customer who wanted her piano rebuilt. b. Rented a part ofthe building to a bicycle repair shop; received $820 for rent in January. c. Rebuilt and delivered five pianos to customers who paid $18,400 in cash. 0'. Received $7,200 from customers as payment on their accounts. e. Received an electric and gas utility bill for $520 to be paid in February. I? Ordered $960 in supplies. 9. Paid $2,140 on account to suppliers. 1'}. Received from Sam Mensa, the major shareholder, a $920 tool {equipment} to use in the business in exchange for the company's shares. i. Paid $15,000 in wages to employees for work in January. j. Declared and paid a cash dividend of $2,600. k. Received and paid for the supplies ordered in {f}. Cash Accounts receivable Beg. bal. Beg. bal. a 600 b. 820 End.bal. End. bal 1,420 Supplies Equipment Beg. bal. Beg. bal. End. bal. End. bal. Land Building Beg. bal. Beg. bal. End. bal End. bal. Accounts payable Deferred Revenue (deposits) Beg. bal. Beg. bal. End. bal. End. bal.Note Payable Contributed Capital Beg. bal. Beg. bal. End. bal. End. bal Retained Earnings Rebuilding Fees Revenue Beg. bal. Beg. bal. a. End. bal. End. bal Rent Revenue Wages Expense Beg. bal. Beg. bal. End. bal. End. bal. Utilities Expense Beg. bal. End. bal3. Using the data from the Taccounts, complete the following equations. _:|_:|_:I _H _I _ 4. Calculate the company's net earnings for January by using the cash basis of accounting. :| 5. Calculate the return on assets using the accrual basis of accounting for January 2020. {Round the nal answer to 2 decimal places}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian edition

119-49633-5, 1119496497, 1119496330, 978-1119496496

Students also viewed these Accounting questions