Stacey's Plano 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 Accounts receivable Supplies Equipment Land Building $6,600 30,400 1,510 9,800 7,800 24,900 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings f. Ordered $940 in supplies. g. Paid $2,140 on account in January. $9,500 3,440 47,200 a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash. b. Received a $560 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $830 for rent in January. d. Received $7,700 from customers as payment on their accounts. e. Received an electric and gas utility bill for $430 to be paid in February. 184 736 19,950 h. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. k. Received and paid cash for the supplies in (). 1. Paid $340 in interest expense on the long-term note payable. 1. Paid $14,300 in wages to employees who worked in January. j. Declared and paid a $2,300 dividend (reduce Retained Earnings and Cash). Required: Prepare an unadjusted classified income statement for January of the second year (ignore income taxes).
Stacey's Plano 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 Accounts receivable Supplies Equipment Land Building $6,600 30,400 1,510 9,800 7,800 24,900 Accounts payable Unearned revenue Long-term note payable Common stock Additional paid-in capital Retained earnings f. Ordered $940 in supplies. g. Paid $2,140 on account in January. $9,500 3,440 47,200 a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash. b. Received a $560 deposit from a customer who wanted her piano rebuilt. c. Rented a part of the building to a bicycle repair shop; received $830 for rent in January. d. Received $7,700 from customers as payment on their accounts. e. Received an electric and gas utility bill for $430 to be paid in February. 184 736 19,950 h. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 110 shares of $1 par value stock. k. Received and paid cash for the supplies in (). 1. Paid $340 in interest expense on the long-term note payable. 1. Paid $14,300 in wages to employees who worked in January. j. Declared and paid a $2,300 dividend (reduce Retained Earnings and Cash). Required: Prepare an unadjusted classified income statement for January of the second year (ignore income taxes).
Chapter6: Business Expenses
Section: Chapter Questions
Problem 44P
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Jj.48.
Transcribed Image Text:Stacey's Plano 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
Accounts receivable
Supplies
Equipment
Land
Building
$6,600
30,400
1,510
9,800
7,800
24,900
a. Rebuilt and delivered five pianos in January to customers who paid $18,600 in cash.
b. Received a $560 deposit from a customer who wanted her plano rebuilt.
Accounts payable
Unearned revenue
Long-term note payable
Common stock
c. Rented a part of the building to a bicycle repair shop; received $830 for rent in January.
d. Received $7,700 from customers as payment on their accounts.
Additional paid-in capital
Retained earnings
e. Received an electric and gas utility bill for $430 to be paid in February.
f. Ordered $940 in supplies.
g. Paid $2,140 on account in January.
h. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in
exchange for 110 shares of $1 par value stock.
1. Paid $14,300 in wages to employees who worked in January.
j. Declared and paid a $2,300 dividend (reduce Retained Earnings and Cash).
k. Received and paid cash for the supplies in ()
1. Paid $340 in interest expense on the long-term note payable.
Operating revenues:
Required:
Prepare an unadjusted classified income statement for January of the second year (ignore income taxes).
STACEY'S PIANO REBUILDING COMPANY
Required:
Prepare an unadjusted classified income statement for January of the second year (ignore income taxes).
Income Statement (unadjusted)
Total operating revenues
Operating expenses:
$9,500
3,440
47,200
Total operating expenses
Other items:
184
736
19,950
0
0
0
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