Question

Ricky's Piano Rebuilding Company has been operating for one year (2016). At the start of 2017, its income statement accounts had zero balances and its balance sheet account balances were as follows:

Cash	$	7,800		Accounts Payable	$	9,800
Accounts Receivable		30,400		Deferred Revenue (deposits)		3,740
Supplies		1,740		Notes Payable		54,400
Equipment		9,800		Contributed Capital		9,800
Land		7,800		Retained Earnings		10,800
Building		31,000

   

Required:
2. Prepare journal entries for the following January 2017 transactions, using the letter of each transaction as a reference: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. Received a $680 deposit from a customer who wanted her piano rebuilt in February.
2. Rented a part of the building to a bicycle repair shop; $390 rent received for January.
3. Delivered five rebuilt pianos to customers who paid $18,100 in cash.
4. Delivered two rebuilt pianos to customers for $8,800 charged on account.
5. Received $7,800 from customers as payment on their accounts.
6. Received a utility bill for $530 for January services to be paid in February.
7. Ordered $1,160 in supplies.
8. Paid $2,240 to suppliers on account in January.
9. Paid $19,000 in wages to employees in January for work done this month.
10. Received and paid cash for the supplies in (g).

1. & 3. Post the journal entries to the T-accounts which are listed below. Show the unadjusted ending balances in the T-accounts.

Use the balances in the completed T-accounts to prepare an unadjusted trial balance at the end of January 2017.

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