Question

Question 6 The accounts in the ledger of Rapid Delivery Service contain the following balances on July 31, 2017. Accounts Receivable Accounts Payable $14,900 9,900 Prepaid Insurance Service Revenue Dividends Common Stock $ 3,500 17,400 860 40,200 Cash Equipment Maintenance and Repairs Expense Insurance Expense 59,560 3,858 Salaries and Wages Expense 8,628 740 940 Salaries and Wages Payable Retained Earnings (July 1, 2017) Notes Payable (due 2020) 29,650 6,500

Answer 1

Credit Rapid Delivery Service Trial Balance For the Month Ended July 31, 2017 Accounts Debit Cash $ 12,544 Accounts receivable $ 14,900 Prepaid Insurance $ 3,500 Equipment $ 59,560 Accounts Payable Salaries & Wages Payable Notes Payable (due 2020) Common Stock Retained Earnings(July 1, 2017) Dividends $ 860 Service Revenue Salaries & Wages Expense $ 8,628 Maintenance & Repairs Expense $ 3,858 Insurance Expense $ 740 Total $ 104,590 $ $ $ $ $ 9,900 940 29,650 40,200 6,500 $ 17,400 $ 104,590 Equipment = Total of Credit - Total of Debit (except Cash) Cash $ 12,544 ($ 104,590 - $ 92,046)

$ 17,400 Rapid Delivery Service Income Statement For the Month Ended July 31, 2017 Service Revenue Operating expenses: Salaries and wages expense $ 8,628 Maintenance & REpair expense $ 3,858 Insurance Expense $ 740 Total operating expenses Net Income $ $ 13,226 4,174 Rapid Delivery Service Statement of Retained Earnings For the Month Ended July 31, 2017 Retained Earnings beginning balance $ Add: Net Income $ $ Add: Dividends paid $ Retained Earnings Ending balance 6,500 4,174 10,674 (860) 9,814

Balance Sheet Assets Current assets Cash Accounts receivable Prepaid Insurance Total Current Assets Non-current assets Equipment Total Assets $ $ $ 12,544 14,900 3,500 $ 30,944 $ $ 59,560 90,504 $ 10,840 Liabilities and Owners' Capital Current liabilities Accounts Payable $ 9,900 Salaries and wages Payable $ 940 Total Current Liabilities Non-Current liabilities Notes Payable (due 2020) Total Laibilities Stockholders' Equity Common Stock $ 40,200 Retained Earnings $ 9,814 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ $ 29,650 40,490 $ $ 50,014 90,504