Reference no: EM132642594

Question - Bob Shinholster Construction Company has been operating for one year. On February 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 $6,750

Accounts Payable $8,450

Accounts Receivable 23,250

Deferred Revenue (deposits) 3,150

Supplies 1,250

Notes Payable (long-term) 52,250

Equipment 17,700

Common Stock 10,500

Land 10,700

Retained Earnings 16,500

Building 31,200

Following are the February transactions:

1. Received a $800 deposit from a customer who wanted her bathroom remodeled in March.

2. Rented a part of the building to a bicycle repair shop; $405 rent received for February.

3. Delivered five rebuilt pianos to customers who paid $16,500 in cash.

4. Delivered two rebuilt pianos to customers for $8,400 charged on account.

5. Received $6,750 from customers as payment on their accounts.

6. Received an electric and gas utility bill for $455 for February services to be paid in February.

7. Ordered $1,270 in supplies.

8. Paid $1,550 on account in February.

9. Paid $11,300 in wages to employees in February for work done this month.

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

Required -

a. Prepare an income statement for the month ended and at February 28.

b. Prepare a statement of retained earnings for the month ended and at February 28.

c. Prepare a classified balance sheet for the month ended and at February 28.