Ricky’s Piano Rebuilding Company has been operating for one year. On January 1, at the start...

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Ricky’s Piano Rebuilding Company has been operating for oneyear. On January 1, at the start of its second year, its incomestatement accounts had zero balances and its balance sheet accountbalances were as follows: Cash $ 6,900 Accounts Payable $ 8,500Accounts Receivable 25,250 Deferred Revenue (deposits) 5,200Supplies 1,350 Notes Payable (long-term) 43,500 Equipment 15,300Common Stock 15,000 Land 6,900 Retained Earnings 6,200 Building22,700 Following are the January transactions: a.Received a $865deposit from a customer who wanted her piano rebuilt in February.b.Rented a part of the building to a bicycle repair shop; $345 rentreceived for January. c.Delivered five rebuilt pianos to customerswho paid $11,925 in cash. d.Delivered two rebuilt pianos tocustomers for $6,800 charged on account. e.Received $4,800 fromcustomers as payment on their accounts. f.Received an electric andgas utility bill for $440 for January services to be paid inFebruary. g.Ordered $995 in supplies. h.Paid $1,600 on account inJanuary. i.Paid $10,300 in wages to employees in January for workdone this month. j.Received and paid cash for the supplies in (g).How to do a income statement for the month ended and at January 31.How to do a statement of retained earnings for the month ended andat January 31. How to do a classified balance sheet for the monthended and at January 31.

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Income statement for the month end at jan 31 st

Particulars	Amount($)
Revenues :
sales revenue($11,925+$6800)	$18,725
Rent received	$345


(-)Expenses:
Supplies expenses	$995
electric and gas utility bill	$440
wages paid	$10,300

Net income	$7,335




Balance sheet for the month ended jan 31st

Liabilities	Amount($)	Assets($)	Amount($)
Common stock	$15,000	Current Assets:
Retained earnings	$6,200	cash(working note)	$11,940
jan retained earnings	$7,335	Accounts receivable($25,250+$2000)	$27,250
Current liabiltiies:		Supplies	$1,350
Accounts payable($8500-$1600)	$6,900	Fixed Assets:
electric and gas uttilitybill payable	$440	Equipments	$15,300
Deferred revenue($5200+$865)	$6,065	Land	$6,900
Long term liabilities:		Building	$22,700
Long term notes payable	$43,500

	$85,440		$85,440

Working note

Cash A/c
Particulars	Amount($)	Particulars	Amount($)
op bal	6900	to Acc payable	1600
by customer a/c	865	to wages	10,300
by rent received	345	to supplies	995
by sales	11,925
by sales	4800
		clo bal	11,940
	24,835		24,835

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Transcribed Image Text

Ricky’s Piano Rebuilding Company has been operating for oneyear. On January 1, at the start of its second year, its incomestatement accounts had zero balances and its balance sheet accountbalances were as follows: Cash $ 6,900 Accounts Payable $ 8,500Accounts Receivable 25,250 Deferred Revenue (deposits) 5,200Supplies 1,350 Notes Payable (long-term) 43,500 Equipment 15,300Common Stock 15,000 Land 6,900 Retained Earnings 6,200 Building22,700 Following are the January transactions: a.Received a $865deposit from a customer who wanted her piano rebuilt in February.b.Rented a part of the building to a bicycle repair shop; $345 rentreceived for January. c.Delivered five rebuilt pianos to customerswho paid $11,925 in cash. d.Delivered two rebuilt pianos tocustomers for $6,800 charged on account. e.Received $4,800 fromcustomers as payment on their accounts. f.Received an electric andgas utility bill for $440 for January services to be paid inFebruary. g.Ordered $995 in supplies. h.Paid $1,600 on account inJanuary. i.Paid $10,300 in wages to employees in January for workdone this month. j.Received and paid cash for the supplies in (g).How to do a income statement for the month ended and at January 31.How to do a statement of retained earnings for the month ended andat January 31. How to do a classified balance sheet for the monthended and at January 31.