e a trial balance andE3-16 The accounts in the ledger of Bastin Delivery Service
ID: 2433216 • Letter: E
Question
e a trial balance andE3-16 The accounts in the ledger of Bastin Delivery Service contain the following bal ial statements. ances on July 31, 2014 AP 2,200 15,500 700 40,000 7,428 820 5,200 $13,400 Prepaid Insurance 8,400 Service Revenue Accounts Receivable Accounts Payable Cash Equipment Maintenance and Dividends 59,360 Common Stock Salaries and Wages Expense Salaries and Wages Payable Repairs Expense Insurance Expense Notes Payable (due 2017) 1,958 900 Retained Earnings 28,450 (July 1, 2014) Instructions (a) Prepare a trial balance with the accounts arranged as illustrated in the chapter, and fill in the missing amount for Cash. (b) Prepare an income statement, a retained earnings statement, and a classified balance sheet for the month of July 2014Explanation / Answer
Trial Balance Cash (98370-85946) 12424 Accounts receivable 13400 Prepaid insurance 2200 Equipment 59360 Accounts payable 8400 Salaries and wages payable 820 Notes payable 28450 Common Stock 40000 Retained earnings 5200 Dividend 700 Service revenue 15500 Salaries and wages expense 7428 Maintenance and Repairs expense 1958 Insurance expense 900 TOTAL 98370 98370 Income Statement: Service revenue 15500 Less: Expense: Salaries and wages expense 7428 Maintenance expense 1958 Insurance expense 900 Net Income 5214 Statement of Retained earnings: Retained earnings beginning Balance 5200 Add: Net income 5214 10414 Less: Dividend 700 Retained earnings ending balance 9714 Balance Sheet: Assets: Current assets: Cash 12424 Accounts receivable 13400 Prepaid insurance 2200 Total Current assets 28024 Equipment 59360 Total Assets 87384 Liabilities: Current liabilities: Accounts payable 8400 salaries and wages payable 820 Total Current liabilities 9220 Longterm liabilities: Notes payable 28450 Equity: Common Stock 40000 Retained earnings 9714 Total Stockholder's equity 49714 Total liabilities and equity 87384
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