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: 20 points Cash Accounts Receivable Supplies Equipment Land Building $ 6,300 Accounts Payable 25,900 Deferred Revenue (deposits) 1,290 Notes Payable 8,300 Contributed Capital 6,300 Retained Earnings 23,500 $ 8,300 3,290 42,400 8,300 9,300 eBook Print 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.) References a. Received a $530 deposit from a customer who wanted her piano rebuilt in February b. Rented a part of the building to a bicycle repair shop: $315 rent received for January c. Delivered five rebuilt pianos to customers who paid $15,100 in cash. d. Delivered two rebuilt pianos to customers for $7,300 charged on account. e. Received $6,300 from customers as payment on their accounts. f. Received a utility bill for $380 for January services to be paid in February g. Ordered $860 in supplies. h. Paid $1,790 to suppliers on account in January 1. Paid $11,500 in wages to employees in January for work done this month. 1. Received and paid cash for the supplies in o)

Answer 1

Ricky's Piano Rebuilding Company Journal entries Date Account Cash Deferred Revenue Credit Debit $ 530 $ 530 $ 315 Cash Rent Revenue $ 315 $ 15,100 Cash Paino Rebuilding Revenue $ 15,100 d $ 7,300 Accounts Receivable Paino Rebuilding Revenue $ 7,300 $ 6,300 Cash Accounts Receivable $ 6,300 $ 380 Utilities expense Accounts Payable $ 380 No entry As its just an order & not purchase yet h $ 1,790 Accounts Payable Cash $ 1,790 $ 11,500 Wages expense Cash $ 11,500 $ 860 Supplies Cash $ 860

Date Date Credit Date Credit Ricky's Piano Rebuilding Company T Accounts Date Debit Date Credit Cash Op bal $ 6,300 $ 530 h $ 1,790 $ 315 $ 11,500 $ 15,100 $ 860 $ 6,300 Debit Date Credit Accounts Receivable $ 25,900 $ 7,300 d $ 6,300 Debit Date Supplies $ 1,290 $ 860 Debit Date Equipment $ 8,300 Op bal Op bal d Op bal j Bal. Bal. Bal. Bal. $ 14,395 Land $ 6,300 $ 26,900 Building $23,500 $ 2,150 Accounts Payable Op bal $ 1,790 $ 8,300 Deferred Revenue Op bal Op bal Op bal $ 8,300 $ 380 $ 3,290 $ 530 Bal. Bal. $ 6,890 $ 3,820 $ 6,300 Notes Payable Op bal $ 23,500 Contributed Capital Op bal Bal. Retained Earnings Op bal $42,400 $ 8,300 $ 9,300 $ 8,300 $ 9,300 Bal. $ 42,400 Paino Rebuilding Revenue $ 15,100 $ 7,300 Bal. Rent Revenue Bal. Wages expense $ 11,500 Utilities expense $ 380 $ 315 i $ 22,400 $ 315 Bal. $ 11,500 Bal. $ 380

Unadjusted TB Debit Credit 14,395 26,900 2,150 8,300 6,300 23,500 Ricky's Piano Rebuilding Com; Account Names Cash Accounts Receivable Supplies Equipment Land Building Accounts Payable Deferred Revenue Notes Payable Contributed Capital Retained Earnings Paino Rebuilding Revenue Rent Revenue Wages expense Utilities expense Totals 6,890 3,820 42,400 8,300 9,300 22,400 315 11,500 380 93,425 93,425