[The following information applies to the questions displayedbelow.] Ricky’s Piano Rebuilding Company has been operating for oneyear. On January 1, at the start of its second year, its incomestatement accounts had zero balances and its balance sheet accountbalances were as follows: Cash $ 7,850 Accounts Payable $ 10,300Accounts Receivable 15,000 Deferred Revenue (deposits) 4,400Supplies 2,100 Notes Payable (long-term) 41,500 Equipment 9,500Common Stock 10,000 Land 8,400 Retained Earnings 5,050 Building28,400 Following are the January transactions: Received a $690deposit from a customer who wanted her piano rebuilt in February.Rented a part of the building to a bicycle repair shop; $350 rentreceived for January. Delivered five rebuilt pianos to customerswho paid $15,050 in cash. Delivered two rebuilt pianos to customersfor $7,700 charged on account. Received $6,350 from customers aspayment on their accounts. Received an electric and gas utilitybill for $765 for January services to be paid in February. Ordered$900 in supplies. Paid $2,450 on account in January. Paid $10,900in wages to employees in January for work done this month. Receivedand paid cash for the supplies in (g). 5-a. Prepare an incomestatement for the month ended and at January 31. 5-b. Prepare astatement of retained earnings for the month ended and at January31. 5-c. Prepare a classified balance sheet for the month ended andat January 31
