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 $ 6,300 

Accounts payable $ 9,200
Accounts receivable 30,300 

Unearned revenue 3,340
Supplies 1,480 

The long-term note payable 47,800
Equipment 10,100

 Common stock 1,700
Land 8,000 

Additional paid-in capital 6,800
Building 26,500 

Retained earnings 13,840

Rebuilt and delivered five pianos in January to customers who paid $19,400 in cash.
Received a $540 deposit from a customer who wanted her piano rebuilt.
Rented a part of the building to a bicycle repair shop; received $850 for rent in January.
Received $7,900 from customers as payment on their accounts.
Received an electric and gas utility bill for $450 to be paid in February.
Ordered $940 in supplies.
Paid $1,740 on account in January.
Received from the home of Stacey Eddy, the major shareholder, a $970 tool (equipment) to use in the business in exchange for 120 shares of $1 par value stock.
Paid $14,000 in wages to employees who worked in January.
Declared and paid a $2,100 dividend (reduce Retained Earnings and Cash).
Received and paid cash for the supplies in (f).

E3-10 Part 4
4. What is net income if Stacey’s used the cash basis of accounting?