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 $ 6,400 Accounts payable 32,000 Unearned revenue 1,500 Long-term note payable 9,500 Common stock 7,400 Additional paid-in capital 25,300 Retained earnings Required: 1. Create T-accounts for the balance sheet accounts and for these additional accounts: Rebuilding Fees Revenue, Rent Revenue, Wages Expense, Utilities Expense, and Interest Expense. Enter the beginning balances. 2. Enter the following transactions for January of the second year into the T-accounts, using the letter of each transaction as the reference: a. Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash. b. Received a $600 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $850 for rent in January. d. Received $7,200 from customers as payment on their accounts. e. Received an electric and gas utility bill for $400 to be paid in February. f. Ordered $960 in supplies. g. Paid $2,300 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock. i. Paid $16,500 in wages to employees who worked in January. 1. Declared and paid a $2,200 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (1). 1. Paid $320 in interest expense incurred this year on the long-term note payable. 3. Using the data from the T-accounts, amounts for the following at the end of January of the second year were Page 151 Revenues $ Assets S -Expenses $ = Liabilities $ = Net Income $ +Stockholders' Equity $ E3-10 L03-5 Preparing an Income Statement Refer to E3-9. Required: Use the ending balances in the T-accounts in E3-9 to prepare an unadiusted classified income statement for January of the second year (ignore income taxes).