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 $ 8,700 3.640 47400 1,580 15120 6,320 $6,600 Accounts payable 30,300 Unearned revenue Cash Accounts receivable Supplios Equipment 1460 Note payable (long term) 10,400 Common stock 7400 Retained earnings Building 26,600 Additional paid-in capital a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash. b. Received a $600 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $860 for rent in January. d. Received $7,300 from customers as payment on their accounts. e. Received an electric and gas utility bil for $430 to be paid in February. f Ordered $870 In supples. g. Paid $1,240 on account in January h. Received from the home of Stacey Eddy, the major shareholder, a $910 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock i. Paid S14,700 in wages to employees who worked in January. j. Declared and paid a $2,200 (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (t.

4. What is net income if Stacey’s used the cash basis of accounting?

Answer 1

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