Question

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	$	7,100		Accounts Payable	$	12,500
Accounts Receivable		29,750		Deferred Revenue (deposits)		3,550
Supplies		2,200		Notes Payable (long-term)		42,250
Equipment		11,200		Common Stock		17,000
Land		9,800		Retained Earnings		7,350
Building		22,600

Following are the January transactions:

1. Received a $795 deposit from a customer who wanted her piano rebuilt in February.
2. Rented a part of the building to a bicycle repair shop; $545 rent received for January.
3. Delivered five rebuilt pianos to customers who paid $14,425 in cash.
4. Delivered two rebuilt pianos to customers for $7,600 charged on account.
5. Received $6,400 from customers as payment on their accounts.
6. Received an electric and gas utility bill for $750 for January services to be paid in February.
7. Ordered $1,140 in supplies.
8. Paid $3,400 on account in January.
9. Paid $16,900 in wages to employees in January for work done this month.
10. Received and paid cash for the supplies in (g).

Prepare a classified balance sheet for the month ended and at January 31.

Answer 1

for formulas and calculations, refer to the image below -