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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 $ 6,300 Accounts payable Accounts receivable 30,100 Unearned revenue Supplies 1,520 Long-term note payable Equipment 10,500 Common stock Land 7,900 Additional paid-in capital Building 28,000 Retained earnings $ 8,600 3,440 47,600 194 776 23,710 a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash. b. Received a $530 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $900 for rent in January. d. Received $7,400 from customers as payment on their accounts. e. Received an electric and gas utility bill for $430 to be paid in February. f. Ordered $950 in supplies. g. Paid $1,740 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $970 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. i. Paid $14,100 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 $340 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)

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 $ 6,300 Accounts payable Accounts receivable 30,100 Unearned revenue Supplies 1,520 Long-term note payable Equipment 10,500 Common stock Land 7,900 Additional paid-in capital Building 28,000 Retained earnings $ 8,600 3,440 47,600 194 776 23,710 a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash. b. Received a $530 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $900 for rent in January. d. Received $7,400 from customers as payment on their accounts. e. Received an electric and gas utility bill for $430 to be paid in February. f. Ordered $950 in supplies. g. Paid $1,740 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $970 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. i. Paid $14,100 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 $340 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)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $ 6,300 Accounts payable Accounts receivable 30,100 Unearned revenue Supplies 1,520 Equipment 10,500 Long-term note payable Common stock Land 7,900 Additional paid-in capital Building 28,000 Retained earnings $ 8,600 3,440 47,600 194 776 23,710 a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash. b. Received a $530 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $900 for rent in January. d. Received $7,400 from customers as payment on their accounts. e. Received an electric and gas utility bill for $430 to be paid in February. f. Ordered $950 in supplies. g. Paid $1,740 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $970 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. i. Paid $14,100 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). I. Paid $340 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) < Prev 7 of 8 Next >
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 $ 6,300 Accounts payable Accounts receivable 30,100 Unearned revenue Supplies 1,520 Equipment 10,500 Long-term note payable Common stock Land 7,900 Additional paid-in capital Building 28,000 Retained earnings $ 8,600 3,440 47,600 194 776 23,710 a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash. b. Received a $530 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $900 for rent in January. d. Received $7,400 from customers as payment on their accounts. e. Received an electric and gas utility bill for $430 to be paid in February. f. Ordered $950 in supplies. g. Paid $1,740 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $970 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. i. Paid $14,100 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). I. Paid $340 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) < Prev 7 of 8 Next >
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