Question

17. The accounts in the ledger of Steve's Delivery Service contain the following balances on July 31, 2019. Accounts Receivable $11,400 Accounts Payable 7,400 Cash 23,940 Equipment 55,360 Gasoline Expense 950 (one statennt Insurance Expense 600 alance sheet Notes Payable 31,450 Income Taxes Payable 8,650 Prepaid Insurance 1,800 e Sheef Repairs Expense 1,200 Statenen( - Fees Earned 15,500 Supplies expense 900 sheet Supplies 2,900 Wages Expense utenent 6,400 Wages Payable nect 900 Steve Smith, Capital 41,550 Instructions Prepare an income statement, a statement of owner's equity, and a balance sheet for the month of July 2019. Income Statement

Answer 1

Income statement of Steve's delivery service for the month ended on July 31st 2019:

Particulars	Amounts	Amounts
Revenues
Fees earned		$ 15,500
Total revenue		$ 15,500
Expenses
Gasoline expenses	$ 950
Insurance expenses	$ 600
Repair expenses	$ 1,200
Supplies expenses	$ 900
Wages expenses	$6,400
Total expenses		$ 100,50
Net income ( Total revenue - total expenses)		$ 5,450

Statement of Owners equity of Steve's delivery service for the month ended July 31st 2019:

Particulars	Amounts
Steve Smith, capital stock On1st July 2019	$ 41,550
Add: Net income	$ 5,450
Steve Smith, capital stock on 31st July 2019	$ 47,000

Balance sheet of Steve's delivery service as on 31st July 2019

Assets	Amounts ($)	Liabilities & Stockholders equity	Amounts ($)
Current assets		Current liabilities
Cash	23,940	Note payable	31,450
Accounts receivable	11,400	Account payable	7,400
Prepaid insurance	1,800	Wages payable	900
Supplies	2,900	Income tax payable	8,650
Total current assets	400,40	Total liabilities	48,400
Non current assets		Stockholders equity
Equipment	55,360	Steve Smith Capital stock on 31st July 2019	47,000
Total Assets	95,400	Total liabilities & shareholders equity	95,400