[The following information applies to the questions displayed below.] Ricky’s Piano Rebuilding Company has been operating...

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Accounting

[The following information applies to the questions displayedbelow.] 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 $ 7,850 Accounts Payable $ 10,300Accounts Receivable 15,000 Deferred Revenue (deposits) 4,400Supplies 2,100 Notes Payable (long-term) 41,500 Equipment 9,500Common Stock 10,000 Land 8,400 Retained Earnings 5,050 Building28,400 Following are the January transactions: Received a $690deposit from a customer who wanted her piano rebuilt in February.Rented a part of the building to a bicycle repair shop; $350 rentreceived for January. Delivered five rebuilt pianos to customerswho paid $15,050 in cash. Delivered two rebuilt pianos to customersfor $7,700 charged on account. Received $6,350 from customers aspayment on their accounts. Received an electric and gas utilitybill for $765 for January services to be paid in February. Ordered$900 in supplies. Paid $2,450 on account in January. Paid $10,900in wages to employees in January for work done this month. Receivedand paid cash for the supplies in (g). 5-a. Prepare an incomestatement for the month ended and at January 31. 5-b. Prepare astatement of retained earnings for the month ended and at January31. 5-c. Prepare a classified balance sheet for the month ended andat January 31

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5-a.

Ricky's Piano Rebuilding Company
Income Statement
For the month ended January 31
$ $
Service Revenue 22,750
Rent Revenue 350
Total Revenues 23,100
Expenses:
Wages Expense 10,900
Utilities Expense 765
Total Expenses 11,665
Net Income 11,435

5-b.

Ricky's Piano Rebuilding Company
Statement of Retained Earnings
For the month ended January 31
Retained Earnings, January 1 5,050
Net income earned during the period 11,435
Retained Earnings, January 31 16,485

5-c.

Ricky's Piano Rebuilding Company
Balance Sheet
January 31
Assets $ $
Cash 16,040
Accounts Receivable 16,350
Supplies 3,000
Total Current Assets 35,390
Equipment 9,500
Buildings 28,400
Land 8,400
Total Fixed Assets 46,300
Total Assets 81,690
Liabilities
Accounts Payable 8,615
Deferred Revenue 5,090
Total Current Liabilities 13,705
Long Term Liabilities
Notes Payable 41,500
Total Liabilities 55,205
Stockholders' Equity
Common Stock 10,000
Retained Earnings 16,485
Total Stockholders' Equity 26,485
Total Liabilities and Stockholders' Equity 81,690

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