Ricky s Piano Rebuilding Company has been operating for

one year #2685

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:Required:1. Create T- accounts for the balance sheet
accounts and for these additional accounts: Service Revenue, Rent Revenue, Salaries and
Wages Expense, and Utilities Expense. Enter the beginning balances.2. Prepare journal entries
for the following January transactions, using the letter of each transaction as a reference: a.
Received a $ 500 deposit from a customer who wanted her piano rebuilt 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 utility 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 wages 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 the T- accounts. Show the unadjusted ending
balances in the T- accounts.View Solution:
Ricky s Piano Rebuilding Company has been operating for one year

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