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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 $ 6,800 30,100 1,490 10,180 7,600 26,700 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid in capital Retained earnings $ 9,400 3,040 47,40 1,560 6,240 15,150 a. Rebuilt and delivered five planos In January to customers who paid $18,800 In cash. b. Received a $540 deposit from a customer who wanted her plano rebullt. c. Rented a part of the building to a bicycle repair shop, received $860 for rent in January d. Received $7,600 from customers as payment on their accounts. e. Received an electric and gas utility bill for $420 to be paid in February f. Ordered $950 in supplies. g. Pald $1,940 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $930 tool (equipment) to use in the business In exchange for 110 shares of $1 par value stock. 1. Pald $14,700 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) 3. Using the data from the T-accounts, amounts for the following at the end of January of the second year, were: Revenues Expenses = Net income Assets = Liabilities + Stockholders' equity
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