Ricky's Piano Rebuilding Company has been operating for 1-year (2012). At the beginning of 2013, its income statement accounts had zero balances and its balance sheet account balances were as shown below:
Cash $ 6,000 Accounts Payable $ 8,000
Accounts Receivable 25,000 Unearned Revenue (deposits) 3,200
Supplies 1,200 Notes Payable 40,000
Equipment 8,000 Contributed Capital 8,000
Land 6,000 Retained Earnings 9,000
Building 22,000
Required:
1) Make T-accounts for the balance sheet accounts and for such additional accounts: Piano Rebuilding Revenue, Rent Revenue, Wages Expense and Utilities Expense. Enter the starting balances.
2) Make journal entries for the given January 2010 transactions, by using the letter of each transaction as a reference:
a) Received a $500 deposit from a customer who wanted her piano re-built in February.
b) Rented a part of the building to a bicycle repair shop; $300 rent received for January.
c) Delivered five rebuilt pianos to customers who paid $14,500 in cash.
d) Delivered two rebuilt pianos to customers for $7,000 charged on account.
e) Received $6,000 from customers as payment on their accounts.
f) Received an electric and gas usefulness bill for $350 for January services to be paid in February.
g) Ordered $800 in supplies.
h) Paid $1,700 on account in January.
i) Paid $10,000 in salaries to employees in January for work done this month.
j) Received and paid cash for the supplies in (g).
3. Post the journal entries to T-accounts. Illustrate the unadjusted ending balances in T-accounts.