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Ricky’s 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	$	7,250		Accounts Payable	$	12,350
Accounts Receivable		33,000		Deferred Revenue (deposits)		4,200
Supplies		1,750		Notes Payable (long-term)		40,750
Equipment		10,500		Common Stock		11,000
Land		6,650		Retained Earnings		18,350
Building		27,500

Following are the January transactions:

1. Received a $900 deposit from a customer who wanted her piano rebuilt in February.
2. Rented a part of the building to a bicycle repair shop; $600 rent received for January.
3. Delivered five rebuilt pianos to customers who paid $12,300 in cash.
4. Delivered two rebuilt pianos to customers for $6,900 charged on account.
5. Received $4,900 from customers as payment on their accounts.
6. Received an electric and gas utility bill for $410 for January services to be paid in February.
7. Ordered $825 in supplies.
8. Paid $1,400 on account in January.
9. Paid $17,700 in wages to employees in January for work done this month.
10. Received and paid cash for the supplies in (g).

1. 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.

_____________________________________________________________________

8.

The following accounts are taken from Kijijo Riding Corp., a company that specializes in occupational therapy and horseback riding lessons, as of December 31.

KIJIJO RIDING CORP.
Unadjusted Trial Balance
At December 31
Account Name	Debits				Credits
Cash	$	74,100
Accounts Receivable		7,250
Prepaid Insurance		9,000
Equipment		66,900
Land		37,050
Accounts Payable					$	33,850
Deferred Revenue						2,000
Notes Payable (long-term)						68,000
Common Stock						5,000
Retained Earnings						66,925
Dividends		0
Service Revenue						27,600
Salaries and Wages Expense		8,250
Repairs and Maintenance Expense		425
Office Expenses		400
Totals	$	203,375			$	203,375

Required:

1. Using the unadjusted trial balance provided, create an Income Statement for Kijijo Riding Corp., for the year ended December 31.

2. Using the unadjusted trial balance provided, create a Statement of Retained Earnings for Kijijo Riding Corp., for the year ended December 31.

3. Using the unadjusted trial balance provided, create a classified Balance Sheet for Kijijo Riding Corp., for the year ended December 31.

Answer 1

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5-16)|| Stalement of Relalgel Eqxologs. - Stylement of Relyined Equning at the end of Januquys) Particula15 Lamt($) Amt.c% Bal9964 of Rebalacl EqW0/995_95 on- 18810 514499 +: Net Income of the month logo Balance of Retained Equnings - 1994914 b) 95 on 20040 560) Classified Balance sheet - Balance sheet gr on January 3) B Assets Amt ($) Liability and Equity Ant ($2 Assets ligbilities Cash (W. No 1 6025 | Accounts Payable logso Accounts Receivable 35000 (12330 -1400) (33000 +6900 - 4900) Detarred Revenue 5100 Supplies (1710+2 2575 - (4200+ 900) Equipment | 10300 | 1tilitze, Bill Payable 1 6650 | Notes Payable long teum | 40710 27100 Equitier common stock Retained Equnings 20040 410 Land building 11000 8820 | 88250 ftohyllybilnos l_ leyicy Total Assets

working Note Git Account Iron partjullars Amt ($) الروابط To 7250 Gsh Account Tamt. (1) Partielgosa By Accounts Payable by Wager and salary 600 Bs Supplies 12300 4900 To Deferred Revenue To Rent Revenue To Service Goofs sold To Accounts Receivable 902 1400 17700 825 fay Balance cll 6025 1599 25950 Amt. ($2 e kijijo Riding Coup 8-9 Income Styhegeni. Income Statement Particulars Service Reveque - Expenses salaries and wagos Repairs 294 Maioiglapque Expenses Office Expenses Ant. $ 27600 1 8250 42 | 400 I9075) Net Income 18525 8-6|| Statement of changes_19 Rebziged Equnings - Partjullars Relgiged Egunlage Bal995€ os on Jany gry I t Net Income I Retainer Earnings Balance qs on December 31 Amt$) 66925 18515 85450

Amt | Balance Sheet_qc on - Asseto - Assets Cash Accounts Receivable Prepaid Insurance Equipment Land 3370 2000 December 3/ Balance Sheet Ama-($2 Liability and Equity Liabilities 74100 Accounts Payable 7250 Defferred Rêve que gooo Notes Payable - long 66900 term 370so - Egylty Comon stock Rebaiged Eqxnlegs 67000 Sooo 85450 Total Asseli | 134300 Total liability & Equity 194300