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	$	6,300	Accounts payable	$	9,200
Accounts receivable		30,300	Unearned revenue		3,340
Supplies		1,480	Long-term note payable		47,800
Equipment		10,100	Common stock		1,700
Land		8,000	Additional paid-in capital		6,800
Building		26,500	Retained earnings		13,840

1. Rebuilt and delivered five pianos in January to customers who paid $19,400 in cash.
2. Received a $510 deposit from a customer who wanted her piano rebuilt.
3. Rented a part of the building to a bicycle repair shop; received $820 for rent in January.
4. Received $7,400 from customers as payment on their accounts.
5. Received an electric and gas utility bill for $490 to be paid in February.
6. Ordered $890 in supplies.
7. Paid $1,440 on account in January.
8. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 120 shares of $1 par value stock.
9. Paid $14,000 in wages to employees who worked in January.
10. Declared and paid a $2,100 dividend (reduce Retained Earnings and Cash).
11. Received and paid cash for the supplies in (f).

E3-10 Part 4

4. What is net income if Staceys used the cash basis of accounting?