Question

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	$	6,250	Accounts Payable	$	8,600
Accounts Receivable		31,500	Unearned Revenue (deposits)		3,850
Supplies		2,400	Notes Payable		42,750
Equipment		15,200	Common Stock		9,000
Land		8,250	Retained Earnings		12,300
Building		12,900

Following are the January 2013 transactions:

a.	Received a $950 deposit from a customer who wanted her piano rebuilt in February.
b.	Rented a part of the building to a bicycle repair shop; $370 rent received for January.
c.	Delivered five rebuilt pianos to customers who paid $19,600 in cash.
d.	Delivered two rebuilt pianos to customers for $9,700 charged on account.
e.	Received $8,650 from customers as payment on their accounts.
f.	Received an electric and gas utility bill for $825 for January services to be paid in February.
g.	Ordered $1,125 in supplies.
h.	Paid $3,250 on account in January.
i.	Paid $12,500 in wages to employees in January for work done this month.
j.	Received and paid cash for the supplies in (g).

QUESTION 1

Prepare journal entries for the above January transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

QUESTION 2

Post the journal entries to the T-accounts. Show the unadjusted beginning and ending balances in the T-accounts.

QUESTION 3

Answer 1

Answer 1: Journal Entries

Sr. No.	Particulars	Debit	Credit
a	Cash a/c	950
	To Unearned revenue		950
	(Being advance received for rebuilding the piano)
b	Cash a/c	370
	To Rent Revenue a/c		370
	(Being rent income received)
c	Cash	19600
	To service revenue		19600
	(Being sales made in cash)
d	Accounts receivables	9700
	To service revenue		9700
	(Being sales made on credit)
e	Cash a/c	8650
	To accounts receivables		8650
	(Being cash received from debtors)
f	Utilities Exp	825
	To Accounts payable		825
	(Being exp for electricity & gas accrued)
g	No entry is made for order made
h	Accounts payable	3250
	To cash		3250
	(To cash paid to creditors)
i	Salaries & wages exp	12500
	To cash		12500
	(Being wages paid for the m/o january)
j	Supplies	1125
	To Cash		1125
	(Being cash paid for the supplies ordered)

2. Ledger Posting

Cash					Accounts receivable
Beg. Bal.	6250	By Accounts payable	3250		Beg Bal	31500	By cash	8650
To Unearned revenue	950	By salaries & wages	12500		To service revenue	9700
To Rent Income a/c	370	By Supplies	1125				end bal	32550
To service revenue	19600
To accounts receivable	8650	End bal	18945
	35820		35820			41200		41200
Supplies					Equipment
Beg Bal	2400				Beg Bal	15200	end bal	15200
To Cash	1125	End bal	3525
	3525		3525			15200		15200
Land					Building
Beg Bal	8250	End Bal	8250		Beg Bal	12900	End Bal	12900
	8250		8250			12900		12900
Accounts payable					Unearned revenue
To Cash	3250	Beg Bal	8600		End Bal	4800	Beg Bal	3850
End Bal	6175	By Utilities	825				By Cash	950
	9425		9425			4800		4800
Notes payable					Common Stock
End Bal	42750	Beg Bal	42750		End Bal	9000	Beg Bal	9000
	42750		42750			9000		9000
Retained earnings					Service Revenue
End Bal	12300	Beg Bal	12300		End Bal	29300	Beg Bal	0
							By Cash	19600
	12300		12300				By Accounts receivable	9700
						29300		29300
Rent revenue
End Bal	370	Beg Bal	0		Salaries & Wages Exp
		By Cash	370		Beg Bal	0	End Bal	12500
					To Cash	12500
	370		370
						12500		12500
Utilities Exp
Beg Bal	0	End Bal	825
To Accounts payable	825
	825		825

3.

Unadjusted Trial Balance
Accounts Name	Debit	Credit
Cash	18945
Accounts Receivable	32550
Supplies	3525
Equipment	15200
Land	8250
Buildings	12900
Accounts payable		6175
Unearned revenue		4800
Notes Payable		42750
Common Stock		9000
Retained Earnings		12300
Service Revenue		29300
Rent Revenue		370
Salaries & wages	12500
Utilities exp	825
Total	104695	104695