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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	$	6,800		Accounts Payable	$	12,600
Accounts Receivable		32,750		Deferred Revenue (deposits)		3,250
Supplies		1,850		Notes Payable (long-term)		45,500
Equipment		14,500		Common Stock		7,500
Land		10,050		Retained Earnings		17,300
Building		20,200

Following are the January transactions:

1. Received a $870 deposit from a customer who wanted her piano rebuilt in February.
2. Rented a part of the building to a bicycle repair shop; $355 rent received for January.
3. Delivered five rebuilt pianos to customers who paid $12,775 in cash.
4. Delivered two rebuilt pianos to customers for $6,400 charged on account.
5. Received $5,300 from customers as payment on their accounts.
6. Received an electric and gas utility bill for $675 for January services to be paid in February.
7. Ordered $945 in supplies.
8. Paid $1,750 on account in January.
9. Paid $11,000 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.

   Prepare a classified balance sheet for the month ended and at January 31.

   RICKY’S PIANO REBUILDING COMPANY Balance Sheet For the Month Ended January 31 Assets Current Assets Cash Accounts Receivable Supplies Total Current Assets 0 Land Equipment Buildings Total Assets $0 Liabilities Current Liabilities Accounts Payable Deferred Revenue Total Current Liabilities 0 Notes Payable (long-term) Total Liabilities 0 Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity $0

   Prepare a statement of retained earnings for the month ended and at January 31.

   	RICKY’S PIANO REBUILDING COMPANY Statement of Retained Earnings For the Month Ended January 31 Retained Earnings, January 1 $12,775 Add: Net Income Less: Dividends Retained Earnings, January 31

Answer 1

Step 2 Ricky's Piano Rebuilding Compan Trial Balance Trail Balance Entry Adjustment Januar January 31, Particulars Cash Accounts Receivable Supplies Equipment Land Building Accounts Payable Deferred Revenue (Deposit) Notes Payable (Long Term) Common Stock Retained Earnings Rental Income Service Revenue Utilities Expense Salaries and Wages Expense Debit Credit Debit Credit Debit Credit $13,695$12 $6,800 $32,750 $1,850 $14,500 $10,050 $20,200 $19,300 $6,400 $945 0 0 0 $1,750 0 0 So 0 So $5,300$33,850 $2,795 $O$14,500 $0$10,050 So$20,200 0 $12,600 $3,250 $45,500 $7,500 $17,300 $675 $870 So 0 0 $355 SO$19,175 So $11,525 $4,120 $45,500 $7,500 $17,300 $355 $19,175 $675 $11,000 $675 So$11,000 105,475 $86,150 $86,150 40,070 0,070 105,475