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 $ $7,700$ Accounts Payable $ $9,700$

Accounts Receivable $30,100$ Deferred Revenue $($deposits$)3,710$

Supplies $1,710$ Notes Payable $53,600$

Equipment $9,700$ Contributed Capital $9,700$

Land $7,700$ Retained Earnings $10,700$

Building $30,500$

Required:

$2.$ Prepare journal entries for the following January transactions, using the letter of each transaction as a reference: $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Received a $$670$ deposit from a customer who wanted her piano rebuilt in February.

Rented a part of the building to a bicycle repair shop; $$385$ rent received for January.

Delivered five rebuilt pianos to customers who paid $$17,900$ in cash.

Delivered two rebuilt pianos to customers for $$8,700$ charged on account.

Received $$7,700$ from customers as payment on their accounts.

Received a utility bill for $$520$ for January services to be paid in February.

Ordered $$1,140$ in supplies.

Paid $$2,210$ to suppliers on account in January.

Paid $$18,500$ in wages to employees in January for work done this month.

Received and paid cash for the supplies in $($g$).$

$1.$ & $3.$ Post the journal entries to the T$-$accounts which are listed below. Show the unadjusted ending balances in the T$-$accounts.

Use the balances in the completed T$-$accounts to prepare an unadjusted trial balance at the end of January.

Answer rating: 100% (QA)

Here are the journal entries for the January transactions Transaction 1 Received a 670 deposit from a customer for piano rebuilding in February No jou... View the full answer