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Item 2

Item 2 Part 1 of 3 10 points

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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	$	6,900	Accounts payable	$	8,600
Accounts receivable		30,100	Unearned revenue		3,440
Supplies		1,470	Long-term note payable		47,500
Equipment		10,100	Common stock		1,680
Land		7,500	Additional paid-in capital		6,720
Building		27,100	Retained earnings		15,230

1. Rebuilt and delivered five pianos in January to customers who paid $18,900 in cash.
2. Received a $520 deposit from a customer who wanted her piano rebuilt.
3. Rented a part of the building to a bicycle repair shop; received $890 for rent in January.
4. Received $7,900 from customers as payment on their accounts.
5. Received an electric and gas utility bill for $440 to be paid in February.
6. Ordered $940 in supplies.
7. Paid $1,240 on account in January.
8. Received from the home of Stacey Eddy, the major shareholder, a $910 tool (equipment) to use in the business in exchange for 120 shares of $1 par value stock.
9. Paid $14,400 in wages to employees who worked in January.
10. Declared and paid a $2,000 dividend (reduce Retained Earnings and Cash).
11. Received and paid cash for the supplies in (f)

Prepare T accounts

accounting equation

3. Using the data from the T-accounts, amounts for the following at the end of January of the second year, were: Revenues $ 19,790 - Expenses $ 14,840 = Net income $ 4,950 Assets $ 101,150 = Liabilities $ 59,660 + Stockholders' equity $ 41,490

Answer 1

Stacey's Piano Rebuilding Company Journal entries Date Account a Cash Paino Rebuilding Revenue Credit Calculation Debit $ 18,900 $ 18,900 b $ 520 Cash Unearned Revenue $ 520 C $ 890 Cash Rent Revenue $ 890 d $ 7,900 Cash Accounts Receivable $ 7,900 e $ 440 Utilities expense Accounts Payable $ 440 f No entry As its just an order & not purchase yet & $ 1,240 Accounts Payable Cash $ 1,240 $ 910 Equipment Common Stock Additional paid-in capital $ $ 120 =120*$1 790 $ 14,400 i Wages expense Cash $ 14,400 $ 2,000 j Retained Earnings Cash $ 2,000 k $ 940 Supplies Cash $ 940

Date Date Credit Date Credit Stacey's Piano Rebuilding Company T Accounts Date Debit Date Credit Cash Op bal $ 6,900 $ 18,900 g $ 1,240 $ 520 i $ 14,400 $ 890 $ 2,000 $ 7,900 K $ 940 Debit Date Credit Accounts Receivable $30,100 $ 7,900 Debit Date Supplies $ 1,470 $ 940 Debit Date Equipment $10,100 $ 910 Op bal Op bal Op bal k Bal. Bal. Bal. Bal. $ 16,530 Land $ 7,500 $ 22,200 Building $ 27,100 $ 2,410 Accounts Payable Op bal $ 1,240 $ 11,010 Unearned Revenue Op bal Op bal Op bal $ 8,600 $ 440 $ 3,440 $ 520 Bal. Bal. $ 3,960 $ 7,500 Long-term Notes Payable Op bal $ 47,500 $ 27,100 Common Stock Op bal Bal. $ 7,800 Additional paid-in capital Op bal $ 6,720 $ 790 Bal. Retained Earnings $ 2,000 Op bal $15,230 $ 1,680 $ 120 Bal. $ 1,800 $ 7,510 $ 13,230 Bal. $ 47,500 Paino Rebuilding Revenue $ 18,900 Rent Revenue Bal. Wages expense $ 14,400 Bal. Utilities expense $ 440 $ 890 i $ 18,900 Bal. $ 890 Bal. $ 14,400 Bal. $ 440

Stacey's Piano Rebuilding Company Account Names Cash Accounts Receivable Supplies Equipment Land Building Accounts Payable Unearned Revenue Long-term Notes Payable Common Stock Additional paid-in capital Retained Earnings Paino Rebuilding Revenue Rent Revenue Wages expense Utilities expense Totals Unadjusted TB Debit Credit 16,530 22,200 2,410 11,010 7,500 27,100 7,800 3,960 47,500 1,800 7,510 13,230 18,900 890 14,400 440 101,590 101,590

18,900 890 Stacey's Piano Rebuilding Company Income Statement For the Month Ended January 31, 2019 Revenues Paino Rebuilding Revenue Rent Revenue Total Revenues Expenses Wages expense Utilities expense Total Expenses Net Income 19,790 14,400 440 14,840 4,950 Statement of Retained Earnings For the Month Ended January 31, 2019 Retained Earnings, January 1 Net Income Less Dividends Retained Earnings, January 31 15,230 4,950 (2,000) 18,180

Stacey's Piano Rebuilding Company Balance Sheet As of January 31, 2019 Assets Current Assets Cash Accounts Receivable Supplies Total Current Assets 16,530 22,200 2,410 41,140 Property, Plant & Equipment Equipment Land Building Total Property, Plant & Equipment Total Assets 11,010 7,500 27,100 45,610 86,750 Liabilities & Stockholders Equity Current Liabilities Accounts Payable Unearned Revenue Total Current Liabilities 7,800 3,960 11,760 Long term Liabilties Long-term Notes Payable Total Liabilties 47,500 59,260 Stockholders Equity Common Stock Additional paid-in capital Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 1,800 7,510 18,180 27,490 86,750

Stacey's Piano Rebuilding Company Revenues 19,790 - Expenses 14,840 = Net Income 4,950 Assets 86,750 = Liabilities 59,260 + Stockholders Equity 27,490