Question

Question 6 The accounts in the ledger of Rapid Delivery Service contain the following balances on July 31, 2017. Accounts Receivable Accounts Payable Cash Equipment Maintenance and Repairs Expense Insurance Expense Notes Payable (due 2020) $14,400 9,400 ? 59,460 2,958 800 29.450 Prepaid Insurance Service Revenue Dividends Common Stock Salaries and Wages Expense Salaries and Wages Payable Retained Earnings (July 1, 2017) $ 3,200 16,500 800 40,100 8,428 920 6,200 Prepare a trial balance. RAPID DELIVERY SERVICE Trial Balance Debit Credit

Answer 1

Credit RAPID DELIVERY SERVICE Trial Balance July 31,2017 Debit Cash $ 12,524 Equipment $ 59,460 Prepaid Insurance $ 3,200 Accounts Receivable $ 14,400 Notes Payable Salaries and Wages Payable Accounts Payable Dividends 800 Retained Earnings Common Stock Service Revenue Salaries and Wages Expense $ 8,428 Maintenance and repair Expense $ 2,958 Insurance Expense 800 $ 102,570 $ 29,450 $ 920 $ 9,400 $ 6,200 $ 40,100 $ 16,500 $ 102,570

RAPID DELIVERY SERVICE Income Statement July 31, 2017 Amount (S) $ 16,500 Revenue Service Revenue Expenses Salaries and Wages Expense Maintenance and repair Expense Insurance Expense Total expenses Net Income $ $ $ 8,428 2,958 800 $ 12,186 $ 4,314 RAPID DELIVERY SERVICE Retained Earnings Statement July 31,2017 Retained Earnings (July 1,2017) Add: Net Income Amount ($) $ 6,200 $ 4,314 $ 10,514 $ 800 $ 9,714 Less: Dividends Retained Earnings (July 31,2017)

$ 30,124 $ 59,460 $ 89,584 RAPID DELIVERY SERVICE Balance Sheet July 31,2017 Assets Current assets Cash $ 12,524 Accounts receivables $ 14,400 Prepaid Expensse $ 3,200 Total Current Assets Equipment Total assets Liabilities and stockholders' Equity Current Liabilities Accounts Payable $ 9,400 Salaries and Wages payable $ 920 Total Current Liabilities Notes payable (due 2020) Total Liabilities Stockholders Equity Caommkon Stock $ 40,100 Retained earnings $ 9,714 Total Stockholders' Equity Liabilities and stockholders' Equity $ 10,320 $ 29,450 $ 39,770 $ 49,814 $ 89,584