Question

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	$	6,700	Accounts payable	$	8,600
Accounts receivable		30,200	Unearned revenue		3,240
Supplies		1,500	Long-term note payable		48,000
Equipment		10,400	Common stock		180
Land		7,600	Additional paid-in capital		720
Building		26,600	Retained earnings		22,260

1. Rebuilt and delivered five pianos in January to customers who paid $18,700 in cash.
2. Received a $550 deposit from a customer who wanted her piano rebuilt.
3. Rented a part of the building to a bicycle repair shop; received $910 for rent in January.
4. Received $7,900 from customers as payment on their accounts.
5. Received an electric and gas utility bill for $480 to be paid in February.
6. Ordered $900 in supplies.
7. Paid $2,140 on account in January.
8. Received from the home of Stacey Eddy, the major shareholder, a $900 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock.
9. Paid $14,100 in wages to employees who worked in January.
10. Declared and paid a $2,300 dividend (reduce Retained Earnings and Cash).
11. Received and paid cash for the supplies in (f).

Required:

Prepare an unadjusted classified income statement for January of the second year (ignore income taxes).

	STACEY’S PIANO REBUILDING COMPANY Income Statement (unadjusted) For the Month Ended January 31 Operating revenues: Total operating revenues 0 Operating expenses: Total operating expenses 0 Other item: $0

Answer 1