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 $ 6,400 32,000 1,500 9,500 7,400 25,300 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings $ 9,600 3,840 48,500 1,600 7,000 11,560 a. Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash. b. Received a $600 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 $7,200 from customers as payment on their accounts. e. Received an electric and gas utility bill for $400 to be paid in February. f. Ordered $960 in supplies. g. Paid $2,300 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock. 1. Paid $16,500 in wages to employees who worked in January, j. Declared and paid a $2,200 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (). 1. Paid $320 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 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 $ 6,400 32,000 1,500 9,500 7,400 25,300 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings $ 9,600 3,840 48,500 1,600 7,000 11,560 a. Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash. b. Received a $600 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 $7,200 from customers as payment on their accounts. e. Received an electric and gas utility bill for $400 to be paid in February. f. Ordered $960 in supplies. g. Paid $2,300 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock. 1. Paid $16,500 in wages to employees who worked in January, j. Declared and paid a $2,200 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (). 1. Paid $320 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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Fill in Missing all numbers amd and please no plagiarism
Transcribed Image Text: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
$ 6,400
32,000
1,500
9,500
7,400
25,300
Accounts payable
Unearned revenue
Long-term note payable
Common stock
Additional paid-in capital
Retained earnings
$ 9,600
3,840
48,500
1,600.
7,000
11,560
a. Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash.
b. Received a $600 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 $7,200 from customers as payment on their accounts.
e. Received an electric and gas utility bill for $400 to be paid in February.
f. Ordered $960 in supplies.
g. Paid $2,300 on account in January.
Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for
100 shares of $1 par value stock.
1. Paid $16,500 in wages to employees who worked in January,
J. Declared and paid a $2,200 dividend (reduce Retained Earnings and Cash).
k. Received and paid cash for the supplies in (1).
1. Paid $320 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).
Transcribed Image Text:STACEY'S PIANO REBUILDING COMPANY
Income Statement (unadjusted)
For the Month Ended January 31, Year 2
Operating revenues:
Rebuilding fees revenue
Total operating revenues
Operating expenses:
Wages expense
Utilities expense
Total operating expenses
Operating income
Other items:
Rent revenue
Net income
$
0
0
0
2,630
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