Question

Stacey's Piano 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 7,100 30, 200 1,530 10,600 7,600 27,800 Accounts payable $ Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings 9,600 3,140 47,100 196 784 24,010 a. Rebuilt and delivered five pianos in January to customers who paid $19,300 in cash. b. Received a $560 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $820 for rent in January d. Received $8,200 from customers as payment on their accounts. e. Received an electric and gas utility bill for $510 to be paid in February f. Ordered $870 in supplies. g. Paid $1,240 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $980 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock. i. Paid $14,900 in wages to employees who worked in January. j. Declared and paid a $1,700 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (1) Required: Prepare an unadjusted classified income statement for January of the second year (ignore income taxes). STACEY'S PIANO REBUILDING COMPANY Income Statement (unadjusted) Operating revenues: Total operating revenues Operating expenses: Total operating expenses Other item:

Answer 1

Answer Page No 0 ment 0 Stacey's wurdu no vebunding MAAC company MMC Onadjusted ucu Amount Particular Operating Leveries Rebuilding fees revenue . Total operating revenue $ 19300 evenue $19300 Wages expense utilities expense Total operating expenses Operating income Other Item i Rent revenue Net income ($ 14,900) (510) ($15410) $ 3890 $ 820 $ 4710