Refer to E3-10.

E3-10

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:

Cash.............................$ 6,400

Accounts receivable...... 32,000

Supplies........................ 1,500

Equipment..................... 9,500

Land........................... 7,400

Building ...................... 25,300

Accounts payable............. $ 9,600

Unearned revenue ............ 3,840

Long-term note payable...... 48,500

Common stock................ 1,600

Additional paid-in capital.... 7,000

Retained earnings ............. 11,560

Required:

Use the ending balances in the T-accounts in E3-10 to prepare in good form an income statement for January of the second year (ignore income taxes).