Question

Required information [The following information applies to the questions displayed below.) 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 Accounts Receivable Supplies Equipment Land Building $ 6,000 Accounts Payable 25,000 Deferred Revenue (deposits) 1,200 Notes Payable (long-term) 8,000 Common Stock 6,000 Retained Earnings 22.000 $ 8,000 3,200 40,000 8,000 9,000 ces Following are the January transactions: a. Received a $500 deposit from a customer who wanted her plano rebuilt in February b. Rented a part of the building to a bicycle repair shop: $300 rent received for January c. Delivered five rebuilt pianos to customers who paid $14,500 in cash. d. Delivered two rebuilt pianos to customers for $7,000 charged on account e. Received $6,000 from customers as payment on their accounts. f. Received an electric and gas utility bill for $350 for January services to be paid in February g. Ordered $800 in supplies. h. Paid $1,700 on account in January 1. Paid $10,000 in wages to employees in January for work done this month. J. Received and paid cash for the supplies in (a). 4. Prepare an unadjusted trial balance at January 31

Answer 1

Solution:

RICKY'S PIANO REBUILDING COMPANY

Unadjusted Trial Balance

Account Name	Debit	Credit
cash	14,800
Accounts receivable	26,000
supplies	2,000
equipment	8,000
land	6,000
Building	22,000
Accounts payable		6,650
unearned revenue		3,700
Notes payable		40,000
common stock		8,000
Retained Earnings		9,000
Rent		300
Service revenue		21,500
Utilities expense	350
Salaries and wages expense	10,000
	89,150	89,150

Explanation:

cash = 6000 + 500 + 300 + 14500 + 6000 - 1700 - 10000 - 800 = 14,800

Accounts receivable = 25000 + 7000 - 6000 = 2600

Supplies = 1200 + 800 = 2000

Accounts payable = 8000 + 350 - 1700 = 6650

un earned revenue = 3200 + 500 = 3700

Service revenue = 14500 + 7000 = 21500