Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 $ 9,480 3,840 47,480 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 pald cash for the supplies In (). Required: 1&2. Enter the following transactions for January of the second year into the T-accounts, using the letter of esch transaction as the reference. Cash 6,800 Accounts Receivable 30.100 Beg Bal 7,600d) Beg. Bal (a) (b) c) (d) 18,800 540 8801 14,700) 2,100 (6) 950 () 1.940 l End. Bal. 22.500 7,600 End. Bal. 14,910 Supplies 1,490 950 Equipment 10.100 Beg. Bal (k) Beg Bal th) 930 End. Bal. 2,440 End. Bal. 11.030 Land 7,600 Buliding 26.700 Beg. Bal Beg Bal End. Bal 7,600 End. Bal. 26.700 Accounts Payable 9,400 Beg. Bal Beg. Bal (19) Unearned Revenue 3,040 540 (b) 1.940 End. Bal 7,460 End. Bal 3,500 Common Stock Long-term Note Payable 47,400 Beg. Bal Beg. Bal. 1,560 110 (h) End. Bal 47.400 End. Bal. 1,670 Beg. Bal Additional Pald-in Capital 6,240 820 h) Beg. Bal. 0 Retained Earnings 15,150 2.100 End. Bal 7.000 End. Bal. 13,050 Rebuilding Fees Revenue Rent Revenue Beg. Bal Beg. Bal 18,800 (a) 860 (c) End. Bal 18,800 End. Bal 860 Wages Expenso Utilities Expense Beg. Bal 10 Beg. Bal. (e) 14,700 420 End. Bal. 14,700 End. Bal. 420
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started