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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
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 $ 6,400 Accounts payable Accounts receivable 30,800 Unearned revenue Supplies 1,450 Long-term note payable Equipment 9,800 Common stock Land 7,300 Additional paid-in capital Building 26,000 Retained earnings $ 8,700 3,040 47,800 194 776 21,240 a. Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash. b. Received a $590 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 $7,900 from customers as payment on their accounts. e. Received an electric and gas utility bill for $470 to be paid in February. f. Ordered $950 in supplies. g. Paid $1,740 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $970 tool (equipment) to use in the business in exchange for 130 shares of $1 par value stock. i. Paid $14,600 in wages to employees who worked in January. j. Declared and paid a $2,200 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). 1. Paid $320 in interest expense on the long-term note payable. Required: Prepare an unadjusted classified income statement for January of the second year (ignore income taxes). 00
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