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 $ 6,400 Accounts payable Accounts receivable 30,800 Unearned revenue Supplies 1,450 Equipment 10,600 Long-term note payable Common stock Land 8,000 Additional paid-in capital Building 25,400 Retained earnings $ 9,300 3,640 47,600 196 784 21,130 a. Rebuilt and delivered five pianos in January to customers who paid $18,700 in cash. b. Received a $540 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $830 for rent in January. d. Received $7,900 from customers as payment on their accounts. e. Received an electric and gas utility bill for $480 to be paid in February. f. Ordered $910 in supplies. g. Paid $1,540 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $980 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. i. Paid $14,900 in wages to employees who worked in January. j. Declared and paid a $1,700 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). I. Paid $350 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) Operating revenues: Total operating revenues 0 Operating expenses: Total operating expenses 0 0 Other items: $ 3,800
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 $ 6,400 Accounts payable Accounts receivable 30,800 Unearned revenue Supplies 1,450 Equipment 10,600 Long-term note payable Common stock Land 8,000 Additional paid-in capital Building 25,400 Retained earnings $ 9,300 3,640 47,600 196 784 21,130 a. Rebuilt and delivered five pianos in January to customers who paid $18,700 in cash. b. Received a $540 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $830 for rent in January. d. Received $7,900 from customers as payment on their accounts. e. Received an electric and gas utility bill for $480 to be paid in February. f. Ordered $910 in supplies. g. Paid $1,540 on account in January. h. Received from the home of Stacey Eddy, the major shareholder, a $980 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. i. Paid $14,900 in wages to employees who worked in January. j. Declared and paid a $1,700 dividend (reduce Retained Earnings and Cash). k. Received and paid cash for the supplies in (f). I. Paid $350 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) Operating revenues: Total operating revenues 0 Operating expenses: Total operating expenses 0 0 Other items: $ 3,800
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...
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