Question

Ricky's Piano Rebuilding Company has been operating for one year (2016). At the start of 2017, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts Receivable Supplies Equipment Land Building $ 7,800 Accounts Payable 30,400 Deferred Revenue (deposits) 1,740 Notes Payable 9,899 Contributed Capital 7,800 Retained Earnings 31,000 $ 9,800 3,740 54,400 9,800 10,800 Required: 2. Prepare journal entries for the following January 2017 transactions, using the letter of each transaction as a reference: (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. Received a $680 deposit from a customer who wanted her piano rebuilt in February b. Rented a part of the building to a bicycle repair shop: $390 rent received for January c. Delivered five rebuilt pianos to customers who paid $18,100 in cash. d. Delivered two rebuilt pianos to customers for $8,800 charged on account. e. Received $7,800 from customers as payment on their accounts. f. Received a utility bill for $530 for January services to be paid in February g. Ordered $1,160 in supplies. h. Paid $2.240 to suppliers on account in January i. Paid $19,000 in wages to employees in January for work done this month. J. Received and paid cash for the supplies in (9)

Answer 1

Cash Ale 680 390 18100 8800 8800 re) 7800 Bages exento yousenal enties 680 To un evened Revencer ALL Cuneaud Revenue diabolity) (b) Cash Alc 390 To Rent Revenue (Cash acceived for Rent) Cash Ak 18100 76 Seawice Revenue Cash receive for service to cust) Accounts Receviable. TO sowice Revenue ( Seewice delivered on aceerint) Cash Al 7800 To Account Receivable Ceesh served from Cust, on account f vaibsties expenses 530 to Accounts Payable (exp paid to be in feb.) 'No entry required Accorunts Payable TO Cash Alc [ paid to supplies Con a count) 19.000 TO Cash Alo exp paid in Cash) 1160 TO Cash Alo (paid Cash for supplies. DOMS 530 DO 2240 2240 | 9000 Supplies ATC 1160

T Account Cash Beeswing Belance 7800 fa unewr Revenue 680 2240 Decount Puyable 16 Rent Revenue 390 19000 wages ep. • to Service Reen. 19100 1160 supplies. 3 le Account Receivable 7800 enel Balance $12370 Aflaunts seecejuable 30400 Cash 8800 beg. Beleence 7800 10 d. You Reven end Balance $ 31400 Beg Balance g Cash Supplies 1740 1160 $2900 equipment 9800 end. Beilam Beg Balance enel Baleine $ 9800 land 7800 Beg - Balan. % end. Balance 7800 Building Bey: Balance 31000 end. Bell. 1331000

Accounts Payable Beg. Balance Thi Cash b) Stepplies Cash 2240 1160 530 utilites 1160 sepplies B2 . g. ene. Balence Beg- Beelance 188090 Unearned Rerenue 3740 680 Cash 1 end Belance $ 4420 Notes Payable Beg. Balance 54400 end. Balane BSYUOD Contributed Capital Beg Balance 9800 enol Balance $9800 Releired earthing 10800 Beg. Balance end Balance 810800 sowice Revenue 118100 8800 Ceash Acer. Reeni di end Belance $26900 DOMS

Rent Revenue Beg Balence 390 Ceesh b! enel Balance 18390 Wages expenses Beg Balance ☺ Cash 19000 end. Bal 1$ 19000 utilities expenses. Beg Bel o 530 112 Dice- pag. end Bal 130 Do- $ 1160 TO Accerents payable $1160 Working Note 9) (j) supplies Aļc ( supplies cuecived on colit) Accerints payable To Cash Alo ( Cash paid for suppies in (9) entry will be on Supplies & 1160 $ 1160 TO Cash u60

18 debit 4 RICKY'S PIANO REBLI LDING Compossy Chadjustel Trial Balance at fan 31, 2017 Accerents titles Deelt Cash 123 10 Aceants Receivables 31400 supplies 2900 equipment 9800 hand Building Accounts Payable 8090 tr420 votes pagable S4400 Contributed Capital 9800 Retained earring 10800 Piano rebuld- Revenece 26900 pent Revenue 390 Lages expenses 19.000 utilities expenses total 8 114800 31000 defoodeel Revenue 530 $ 1/4800