Question

Credit Debit $ 10,000 26,000 7,893 187,000 $ 38,522 40,000 Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation-Trucks Land Accounts payable Interest payable Long-term notes payable Common stock Retained earnings Dividends Trucking fees earned Depreciation expense-Trucks Salaries expense Office supplies expense Repairs expense-Trucks Totals 14,000 16,000 55,000 42,861 135,000 45,000 122,000 24,847 67,302 3,000 12,341 $ 423,383 $ 423,383

Answer 1

Working Notes: 1
	INCOME STATEMENT
	Revenue :
	Trucking Fees Earned		$           122,000
	Less: Expenses
	Depreciation Expenses - Trucks	$               24,847
	Salaries Expenses	$               67,302
	Office Supplies Expenses	$                 3,000
	Repair Expenses - Trucks	$               12,341
	Total Expenses		$           107,490
	Net Income		$             14,510
Working Notes: 2
	Statement of Retained Earnings
		AMOUNT
	Beginning Balance	$            135,000
	Add: Net Income of the year	$               14,510
	Less: Dividends	$               45,000
	Ending balance of Retained Earnings	$            104,510
Solution:
	BALANCE SHEET
	ASSETS	AMOUNT	AMOUNT
	CURRENT ASSETS:
	Cash	$               10,000
	Account Receivable	$               26,000
	Office Supplies	$                 7,893
	Supplies
			$             43,893
	FIXED ASSETS:
	Land		$             40,000
	Trucks	$            187,000
	Less: Accumulation Depreciation - Trucks	$               38,522	$           148,478
	TOTAL OF ASSETS		$           232,371
	LIABILITIES & SHAREHOLDER'S EQUITY	AMOUNT	AMOUNT
	CURRENT LIABILITIES:
	Account Payable	$               14,000
	Interest Payable	$               16,000
			$             30,000
	LONG TERM LIABILITIES
	Long Term Notes Payable		$             55,000
	Shareholder's Equity
	Common Stock	$               42,861
	Retained Earnings	$            104,510
	Total Shareholder's Equity		$           147,371
	TOTAL OF LIABILITES & SAHREHOLDER'S EQUITY		$           232,371