Question
[The following information applies to the questions displayed below.] Rickys Piano Rebuilding Company has been operating for one year. On January 1, at the start
[The following information applies to the questions displayed below.] Rickys Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash $ 6,250 Accounts Payable $ 8,600 Accounts Receivable 31,500 Deferred Revenue (deposits) 3,850 Supplies 2,400 Notes Payable (long-term) 42,750 Equipment 15,200 Common Stock 9,000 Land 8,250 Retained Earnings 12,300 Building 12,900 Following are the January transactions: Received a $950 deposit from a customer who wanted her piano rebuilt in February. Rented a part of the building to a bicycle repair shop; $370 rent received for January. Delivered five rebuilt pianos to customers who paid $19,600 in cash. Delivered two rebuilt pianos to customers for $9,700 charged on account. Received $8,650 from customers as payment on their accounts. Received an electric and gas utility bill for $825 for January services to be paid in February. Ordered $1,125 in supplies. Paid $3,250 on account in January. Paid $12,500 in wages to employees in January for work done this month. Received and paid cash for the supplies in (g). 5-a. Prepare an income statement for the month ended and at January 31. 5-b. Prepare a statement of retained earnings for the month ended and at January 31. 5-c. Prepare a classified balance sheet for the month ended and at January 31.
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