Ricky’s Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:______
Cash $6,000
Accounts Payable $8,000
Accounts Receivable 25,000
Deferred Revenue (deposits) 3,200
Supplies 1,200
Notes Payable (long-term) 40,000
Equipment 8,000
Common Stock 8,000
Land 6,000
Retained Earnings 9,000
Buildings 22,000
Following are the January transactions:______
A. Received a $500 deposit from a customer who wanted her piano rebuilt in February.
B. Rented a part of the building to a bicycle repair shop; $300 rent received for January.
C. Delivered five rebuilt pianos to customers who paid $14,500 in cash.
D. Delivered two rebuilt pianos to customers for $7,000 charged on account.
E. Received $6,000 from customers as payment on their accounts.
F. Received an electric and gas utility bill for $350 for January services to be paid in February.
G. Ordered $800 in supplies.
H. Paid $1,700 on account in January.
I. Paid $10,000 in wages to employees in January for work done this month.
J. Received and paid cash for the supplies in (g).
1. Prepare an income statement for the month ended and at January 31.
2. Prepare a statement of retained earnings for the month ended and at January 31.
3. Prepare a classified balance sheet for the month ended and at January 31.
4. Prepare a statement of retained earnings for the month ended and at January 31.