Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed 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: a. Rebuilt and delivered five pianos in January to customers who paid $18,800 in cash. b. Received a $510 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $820 for rent in January. d. Received $8,100 from customers as payment on their accounts. e. Received an electric and gas utility bill for $510 to be paid in February. f. Ordered $920 in supplies. g. Paid $1,640 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $990 tool (equipment) to use in the business in exchange for 140 shares of $1 par value stock. i. Paid $14,100 in wages to employees who worked in January. j. Declared and paid a $1,900 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. Required: 1 and 2. Enter the following transactions for January of the second year into the T-accounts, using the letter of each transaction as the reference: 3. Using the data from the T-accounts, amounts for the following at the end of January of the second year, were: Using the data from the T-accounts, amounts for the following at the end of January of the second year, were: 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: a. Rebuilt and delivered five pianos in January to customers who paid $18,800 in cash. b. Received a $510 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $820 for rent in January. d. Received $8,100 from customers as payment on their accounts. e. Received an electric and gas utility bill for $510 to be paid in February. f. Ordered $920 in supplies. g. Paid $1,640 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $990 tool (equipment) to use in the business in exchange for 140 shares of $1 par value stock. i. Paid $14,100 in wages to employees who worked in January. j. Declared and paid a $1,900 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. Required: 1 and 2. Enter the following transactions for January of the second year into the T-accounts, using the letter of each transaction as the reference: 3. Using the data from the T-accounts, amounts for the following at the end of January of the second year, were: Using the data from the T-accounts, amounts for the following at the end of January of the second year, were

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

Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

9th edition

290-1259222138, 1259222136, 978-1259222139

More Books

Students also viewed these Accounting questions

Question

What challenges does GE have to face in the HRM field today?

Answered: 1 week ago