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 $ 6,800 Accounts payable Accounts receivable 30,800 Unearned revenue Supplies 1,500 Long-term note payable Equipment 9,700 Common stock Land Building 7,800 25,000 Additional paid-in capital Retained earnings $ 8,900 3,240 47,800 190 760 20,710 a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash. b. Received a $580 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $850 for rent in January. d. Received $7,300 from customers as payment on their accounts. e. Received an electric and gas utility bill for $470 to be paid in February. f. Ordered $870 in supplies. g. Paid $1,540 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $950 tool (equipment) to use in the business in exchange for 130 shares of $1 par value stock. i. Paid $14,300 in wages to employees who worked in January. j. Declared and paid a $2,300 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). I. Paid $330 in interest expense on the long-term note payable. 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 revenues 0 Operating expenses: Wages expense Utilities expense Total operating expenses 0 0 Other items: Interest expense Interest expense Net income 69 $ 4,350

Foundations of Business (MindTap Course List)

6th Edition

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter16: Mastering Financial Management

Section: Chapter Questions

Problem 3DQ

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Question

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: Complete the income state

1.Accounts receivable

2.Additional paid in capital

3.Advertising expense

5.Cash
5.Commission expense

6.Common stock

7.Consulting expense

8.Cost of goods sold

9.Equipment

10.Fuel expense

11.Games revenue

12.Insurance expense

13.Interest expense

14.Interest revenue

15.Inventory

16.Land

17.Miscellaneous expense

18.Notes payable (long term)

19.Notes payable (short term)

20.Other assets and intangibles

21.Prepaid expenses

22.Rebuilding fees revenue

23.Rent expense

24.Rent revenue

25.Repairs expense

26.Retained earnings

27.Sales revenue

28.Supplies

29.Supplies expense

30.Unearned revenue

31.Utilities expense

32.Wages expense

33.Wages payable
34. Accounts payable

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
$ 6,800
Accounts payable
Accounts receivable
30,800
Unearned revenue
Supplies
1,500
Long-term note payable
Equipment
9,700
Common stock
Land
Building
7,800
25,000
Additional paid-in capital
Retained earnings
$ 8,900
3,240
47,800
190
760
20,710
a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash.
b. Received a $580 deposit from a customer who wanted her piano rebuilt.
c. Rented a part of the building to a bicycle repair shop; received $850 for rent in January.
d. Received $7,300 from customers as payment on their accounts.
e. Received an electric and gas utility bill for $470 to be paid in February.
f. Ordered $870 in supplies.
g. Paid $1,540 on account in January.
h. Received from the home of Stacey Eddy, the major shareholder, a $950 tool (equipment) to use in the business in exchange for
130 shares of $1 par value stock.
i. Paid $14,300 in wages to employees who worked in January.
j. Declared and paid a $2,300 dividend (reduce Retained Earnings and Cash).
k. Received and paid cash for the supplies in (f).
I. Paid $330 in interest expense on the long-term note payable.
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 revenues
0
Operating expenses:
Wages expense
Utilities expense
Total operating expenses
0
0
Other items:
Interest expense
Interest expense
Net income
69
$
4,350

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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