[The following information applies to the questions displayed below.] Ricky’s Pi

Question

[The following information applies to the questions displayed below.] Ricky’s Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash $ 7,850 Accounts Payable $ 10,300 Accounts Receivable 15,000 Deferred Revenue (deposits) 4,400 Supplies 2,100 Notes Payable (long-term) 41,500 Equipment 9,500 Common Stock 10,000 Land 8,400 Retained Earnings 5,050 Building 28,400 Following are the January transactions: Received a $690 deposit from a customer who wanted her piano rebuilt in February. Rented a part of the building to a bicycle repair shop; $350 rent received for January. Delivered five rebuilt pianos to customers who paid $15,050 in cash. Delivered two rebuilt pianos to customers for $7,700 charged on account. Received $6,350 from customers as payment on their accounts. Received an electric and gas utility bill for $765 for January services to be paid in February. Ordered $900 in supplies. Paid $2,450 on account in January. Paid $10,900 in wages to employees in January for work done this month. Received and paid cash for the supplies in (g). Prepare an unadjusted trial balance at January 31.

Explanation / Answer

Solution:

Un Adjusted Trail Balance at january 31 of

Ricky's Piano Rebuilding company

Particulars Debit $ Credit $ Cash 7,850 Accounts receivable 15,000 Equipment 9,500 Building 28,400 Supplies 2,100 Land   8,400 Differed revenue (deposits) 4,400 Accounts payable 10,300 Common stock 10,000 Notes payable 41,500 Retained earnings 5,050   Totals 71,250 71,250

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