Reference no: EM131865981
Question -
1. Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash.
2. Received a $600 deposit from a customer who wanted her piano rebuilt.
3. Rented a part of the building to a bicycle repair shop; received $850 for rent in January.
4. Received $7,200 from customers as payment on their accounts.
5. Received an electric and gas utility bill for $400 to be paid in February.
6. Ordered $960 in supplies.
7. Paid $2,300 on account in January.
8. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock.
9. Paid $16,500 in wages to employees who worked in January.
10. Declared and paid a $2,200 dividend (reduce Retained Earnings and Cash).
11. Received and paid cash for the supplies in (f).
What is net income if Stacey's used the cash basis of accounting?