Question

P2-13A The ledger of Super Delivery Service has the following account balances at the company's year end, Prepare trial balance and August 31, 2017: financial statements (LO 4) AP Accounts Payable $ 3,250 Repairs Expense $ 1,549 Accounts Receivable 4,226 Salaries Expense 5,698 Cash Salaries Payable 883 Equipment 49,660 Service Revenue 37,800 Gas Expense 12,177 Supplies 299 Insurance Expense 2,016 Supplies Expense 2,606 Interest Expense 1,006 T. Rowe, Capital 48,840 Notes Payable 19,480 T. Rowe, Drawings 25,000 Prepaid Insurance 358 Unearned Revenue 643 Instructions (a) Prepare a trial balance, with the accounts arranged in ledger (financial statement) order, as illustrated in the chapter, and determine the missing amount for Cash. (b) Prepare an income statement, statement of owner's equity, and balance sheet.

Answer 1

Requirement a:

Super Delivery Service
Trial Balance
for the year end August 31,2017
Account title	Debit	Credit
Cash	$      6,301
Accounts Receivable	$      4,226
Supplies	$          299
Prepaid Insurance	$          358
Equipment	$    49,660
Salaries Payable		$              883
Accounts Payable		$          3,250
Unearned Revenue		$              643
Notes Payable		$        19,480
T. Rowe, Capital		$        48,840
T. Rowe, Drawings	$    25,000
Service Revenue		$        37,800
Salaries Expense	$      5,698
Supplies Expense	$      2,606
Repairs Expense	$      1,549
Insurance Expense	$      2,016
Interest Expense	$      1,006
Gas Expense	$    12,177
Total	$ 110,896	$     110,896

Cash Balance = $ 6,301.

Requirement b:

Income Statement

Super Delivery Service
Income statement
for the year end August 31,2017
Revenue
Service Revenue	$ 37,800
Total Revenue (A)	$ 37,800
Operating Expenses
Salaries Expense	$    5,698
Supplies Expense	$    2,606
Repairs Expense	$    1,549
Insurance Expense	$    2,016
Interest Expense	$    1,006
Gas Expense	$ 12,177
Total Operating Expense (B)	$ 25,052
Non Operating(or) Other	$             -
Net Income (A-B)		$   12,748

Statement of Owners` Equity

Super Delivery Service
Owner`s Equity
for the year end August 31,2017
Owner`s Equity At Beginning		$   48,840
Add: Owner`s Investment	$           -
Net Income	$ 12,748	$   12,748
Sub Total		$   61,588
Deduct: Owner`s Drawings		$ (25,000)
Owner`s Equity At end		$   36,588

Balance Sheet:

Super Delivery Service
Balance sheet
Assets
Current assets:
Cash	$      6,301
Accounts Receivable	$      4,226
Supplies	$          299
Prepaid Insurance	$          358
Equipment	$    49,660
Total Assets	$    60,844
Liabilities and stockholder's Equity
Current liabilities:
Salaries Payable	$          883
Accounts Payable	$      3,250
Unearned Revenue	$          643
Notes payable	$    19,480
T. Rowe, Capital	$    36,588
Total liabilities and stockholder's equity	$    60,844