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	$	7,850	Accounts Payable	$	10,300
Accounts Receivable		15,000	Unearned Revenue (deposits)		4,400
Supplies		2,100	Notes Payable		41,500
Equipment		9,500	Common Stock		10,000
Land		8,400	Retained Earnings		5,050
Building		28,400

Following are the January 2013 transactions:

a.	Received a $690 deposit from a customer who wanted her piano rebuilt in February.
b.	Rented a part of the building to a bicycle repair shop; $350 rent received for January.
c.	Delivered five rebuilt pianos to customers who paid $15,050 in cash.
d.	Delivered two rebuilt pianos to customers for $7,700 charged on account.
e.	Received $6,350 from customers as payment on their accounts.
f.	Received an electric and gas utility bill for $765 for January services to be paid in February.
g.	Ordered $900 in supplies.
h.	Paid $2,450 on account in January.
i.	Paid $10,900 in wages to employees in January for work done this month.
j.	Received and paid cash for the supplies in (g).

6.

value:

2.	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.)

7.

value

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

Required:

Prepare an unadjusted trial balance at the end of January.

Answer 1

Answer:

1

Transaction	General Journal	Debit	Credit
a.	Cash	690
	Unearned Revenue		690
b.	Cash	350
	Rent Revenue		350
c.	Cash	15,050
	Service Revenue		15,050
d.	Accounts Receivable	7,700
	Service Revenue		7,700
e.	Cash	6,350
	Accounts Receivable		6,350
f.	Utilities Expense	765
	Accounts Payable		765
g.	No Journal Entry Required
h.	Accounts Payable	2,450
	Cash		2,450
i.	Salaries and Wages Expense	10,900
	Cash		10,900
j.	Supplies	900
	Cash		900

2

Cash Beg. Bal debit Account Receivable debit Beg. Bal credit credit $ 7,850.00000 690.00 350.00 6,350.00 $ 15,050.00 $ 30,290.00000 16,040.00000 900 10,900 2,450 15000 7,700 6,350 22700 16350 6350 End. Bal 14250 End. Bal Supplies Beg. Bal Equipment Beg. Bal 2100 9600 900 End. Bal 3000 End. Bal 9600 Building Beg. Bal Land Beg. Bal 8400 28400 End. Ba 8400 End. Bal 28400 Accounts Payable Beg. Bal Unearned Revenue Beg. Bal 10,300 765 4400 690 2,450 End. Bal 8,615 End. Bal 5090

Debit Credit Debit Credit Notes Payable Beg. Bal Common Stock 41,500 Beg. Bal 10,000 End. Bal 41,500 End. Bal 10,000 Retained Earnings Beg. Bal Service Revenue 5,050 Beg. Bal 0 15,050 7,700 End. Bal 5,050 End. Bal 22750 Salaries and Wages Expense Beg. Bal Rent Revenue Beg. Bal 0 0 350 10,900 End. Bal 350 End. Bal 10,900 Utilites Expense Beg. Bal 0 0 765 End. Bal 765

3

RICKY’S PIANO REBUILDING COMPANY
Unadjusted Trial Balance
At January 31
Account Name	Debit	Credit
Cash	$                  16,040
Accounts Receivable	16350
Supplies	3000
Equipment	9600
Land	8400
Buildings	28400
Accounts Payable		$               8,615.00
Unearned Revenue		$               5,090.00
Notes Payable		$             41,500.00
Common Stock		$             10,000.00
Retained Earnings		$               5,050.00
Service Revenue		$             22,750.00
Rent Revenue		$                   350.00
Salaries and Wages Payable	10,900
Utilities Expense	765
Totals	$                  93,455	$                   93,355