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Stacey's Plano 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 Plano 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 $7,100 Accounts payable $8,900 30,400 Unearned revenue 2,940 1,4801 9,700 Long-term note payable Common stock 47,500 194 8,100 Additional paid-in capital 776 26,300 Retained earnings 22,770 a. Rebuilt and delivered five planos in January to customers who paid $18,500 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 $840 for rent in January d. Received $8,200 from customers as payment on their accounts e. Received an electric and gas utility bill for $510 to be paid in February f. Ordered $890 in supplies. g. Paid $1,540 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 150 shares of $1 par value stock 1. Paid $14,600 in wages to employees who worked in January J. Declared and paid a $2,100 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (1) 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)
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