Stacey’s Piano Rebuilding Company has been operating for

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:

A. Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash.

b. Received a $520 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 $8,000 from customers as payment on their accounts.

e. Received an electric and gas utility bill for $420 to be paid in February.

f. Ordered $900 in supplies.

g. Paid $1,640 on account in January.

h. Received from the home of Stacey Eddy, the major shareholder, a $910 tool (equipment) to use in the business in exchange for 150 shares of $1 par value stock.

i. Paid $14,900 in wages to employees who worked in January.

j. Declared and paid a $2,600 dividend (reduce Retained Earnings and Cash).

k. Received and paid cash for the supplies in (f).

1 & 2. Enter the following transactions for January of the second year into the T-accounts, using the letter of each transaction as the reference.

3. Using the data from the T-accounts, amounts for the following at the end of January of the second year, were:
revenue…… – expenses…….. = net income ……

assets…..=liabilties…… +stockholder equity ……

4. What is net income if Stacey’s used the cash basis of accounting?