Answer:
The journal entries to record the transactions are given below.
Received a $665 deposit from a customer who wanted her piano rebuilt in February.
Debit Cash Asset $ 665
Credit Advances from customers $ 665
Rented a part of the building to a bicycle repair shop; $685 rent received for January.
Debit Cash Asset $ 685
Credit Rental income $ 685
Delivered five rebuilt pianos to customers who paid $18,675 in cash.
Debit Cash Asset $ 18,675
Credit Sales income $ 18,675
Delivered two rebuilt pianos to customers for $9,600 charged on account.
Debit Account Receivable Asset $ 9,600
Credit Sales Income $ 9,600
Received $8,000 from customers as payment on their accounts.
Debit Cash Asset $ 8000
Credit Receivable Asset $ 8000
Received an electric and gas utility bill for $395 for January services to be paid in February.
Debit Utility Expense $ 395
Credit Payable Liability $ 395
Ordered $1,255 in supplies.
No entry required
Paid $2,600 on account in January.
Debit Payable Liability $ 2,600
Credit Cash Asset $ 2,600
Paid $12,200 in wages to employees in January for work done this month.
Debit Wage expense $ 12,200
Credit Cash Asset $ 12,200
Received and paid cash for the supplies in (g).
Debit Cash Asset $ 1,255
Credit Sales income $ 1,255
