Question

The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31,...

The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2017.

Accounts Receivable

$11,400

Prepaid Insurance

$1,800

Accounts Payable

7,400

Maintenance and Repairs Expense

1,200

Cash

15,940

Service Revenue

15,500

Equipment

59,360

Dividends

800

Gasoline Expense

950

Common Stock

40,000

Insurance Expense

600

Salaries and Wages Expense

8,400

Notes Payable, due 2020

31,450

Salaries and Wages Payable

900

Retained Earnings (July 1, 2017)

5,200

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(a)

Prepare an income statement for July 2017.

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Answer #1

Answer

--Requirement [a]

Income Statement
for the month ending 31 Jul 2017
Revenues:
Service revenue $15,500
Expenses:
Gasoline expense $950
Insurance expense $600
Maintenance & Repairs Expense $1,200
Salaries & Wages expense $8,400
Total expense $11,150
Net Income $4,350
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