E3-10 (Algo) Preparing an Income Statement LO3-5 Stacey's Piano Rebuilding Company has been operating for one year. At the start of the 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 $6,500 30,800 1,450 10,100 8,000 25,900 a. Rebuilt and delivered five pianos in January to customers who paid $18,500 in cash. b. Received a $550 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $860 for rent in January. d. Received $8,000 from customers as payment on their accounts. e. Received an electric and gas utility bill for $500 to be paid in February. f. Ordered $900 in supplies. 9. Paid $2,040 on account in January. n. Received from the home of Stacey Eddy, the major shareholder, a $930 tool (equipment) to use in the business in exchange for 120 shares of $1 par value stock. Total operating revenues Accounts payable Unearned revenue Long-term note payable Cormon stock 1. Paid $14,500 in wages to employees who worked in January. j. Declared and paid a $1,900 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). 1. Paid $350 in interest expense on the long-term note payable. Operating expenses Additional paid in capital Retained earnings Required: Prepare an unadjusted classified income statement for January of the second year (ignore income taxes). STACEY'S PIANO REBUILDING COMPANY Income Statement (unadjusted) For the Month Ended January 31, Year 2 Operating revenues: Total operating expenses Other items $ 8,900 3,240 47,400 186 744 22,280 S 4,010
E3-10 (Algo) Preparing an Income Statement LO3-5 Stacey's Piano Rebuilding Company has been operating for one year. At the start of the 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 $6,500 30,800 1,450 10,100 8,000 25,900 a. Rebuilt and delivered five pianos in January to customers who paid $18,500 in cash. b. Received a $550 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $860 for rent in January. d. Received $8,000 from customers as payment on their accounts. e. Received an electric and gas utility bill for $500 to be paid in February. f. Ordered $900 in supplies. 9. Paid $2,040 on account in January. n. Received from the home of Stacey Eddy, the major shareholder, a $930 tool (equipment) to use in the business in exchange for 120 shares of $1 par value stock. Total operating revenues Accounts payable Unearned revenue Long-term note payable Cormon stock 1. Paid $14,500 in wages to employees who worked in January. j. Declared and paid a $1,900 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). 1. Paid $350 in interest expense on the long-term note payable. Operating expenses Additional paid in capital Retained earnings Required: Prepare an unadjusted classified income statement for January of the second year (ignore income taxes). STACEY'S PIANO REBUILDING COMPANY Income Statement (unadjusted) For the Month Ended January 31, Year 2 Operating revenues: Total operating expenses Other items $ 8,900 3,240 47,400 186 744 22,280 S 4,010
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:E3-10 (Algo) Preparing an Income Statement LO3-5
Stacey's Piano Rebuilding Company has been operating for one year. At the start of the 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
$ 6,508
30,800
1,450
10,100
8,000
25,900
Accounts payable
Unearned revenue
Long term note payable
Cormon stock
8. Rebuilt and delivered five pianos in January to customers who paid $18,500 in cash.
b. Received a $550 deposit from a customer who wanted her piano rebuilt.
Total operating revenues
Additional paid in capital
Retained earnings
c. Rented a part of the building to a bicycle repair shop; received $860 for rent in January.
d. Received $8,000 from customers as payment on their accounts.
Operating expenses
e. Received an electric and gas utility bill for $500 to be paid in February.
f. Ordered $900 in supplies.
g. Paid $2,040 on account in January.
Total operating expenses
h. Received from the home of Stacey Eddy, the major shareholder, a $930 tool (equipment) to use in the business in exchange for
120 shares of $1 par value stock.
i. Paid $14,500 in wages to employees who worked in January.
j. Declared and paid a $1,900 dividend (reduce Retained Earnings and Cash).
k. Received and paid cash for the supplies in (f).
1. Paid $350 in interest expense on the long-term note payable.
STACEY'S PIANO REBUILDING COMPANY
Income Statement (unadjusted)
For the Month Ended January 31, Year 2
Operating revenues:
Other items:
Required:
Prepare an unadjusted classified income statement for January of the second year (ignore income taxes).
$ 8,900
3,248
47,400
186
744
22,288
0
0
S 4,010
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