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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 Accounts receivable Supplies Equipment Land Building 6,900 30,300 1,520 9,800 8,100 25, 400 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings 9,600 3,540 47,600 192 768 20,320 a. Rebuilt and delivered five pianos in January to customers who paid $19,100 in cash. b. Received a $520 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $870 for rent in January. d. Received $8,200 from customers as payment on their accounts. e. Received an electric and gas utility bill for $430 to be paid in February. f. Ordered $860 in supplies. g. Paid $1,140 on account in January h. Received from the home of Stacey Eddy, the major shareholder, a $960 tool (equipment) to use in the business in exchange for 130 shares of $1 par value stock. i. Paid $14,100 in wages to employees who worked in January j. Declared and paid a $2,400 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). Required: Prepare an unadjusted classified income statement for January of the second year (ignore income taxes). STACEY'S PIANO REBUILDING COMPANY Income Statement (unadjusted) Operating revenues: Total operating revenues Operating expenses: Total operating expenses Other item
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