Question

1 pcs The accounts in the ledger of Overnite Delivery Service contain the following balances on July 31, 2017. Accounts Receivable $7,642. Prepaid Insurance $1,968. Accounts Payable $8,396. Maintenance and Repairs Expense $961. Cash $ ? Service Revenue $10,610. Equipment $49,360. Owner's Drawings $700. Gasoline Expense $758. Owner's Capital $42,000. Utilities Expense $523. Salaries and Wages Expense $4,428. Notes Payable $17,000. Salaries and Wages Payable $815. Prepare a trial balance with the accounts arranged as illustrated in the chapter and fill in the missing amount for Cash.

Answer 1

Answer 1

Trial Balance

Accounts	Debit	Credit
Accounts Receivable	$       7,642
Prepaid Insurance	$       1,968
Accounts Payable		$       8,396
Maintenance and Repairs Expense	$          961
Service Revenue		$     10,610
Equipment	$     49,360
Owner's drawings	$          700
Gasoline Expense	$          758
Owner's capital		$     42,000
Utilities Expense	$          523
Salaries and Wages Expense	$       4,428
Notes Payable		$     17,000
Salaries and Wages Payable		$          815
Cash	$          12,481
Total	$          78,821	$          78,821

Answer 2

Closing Entries

Account Title	Debit	Credit
Service Revenue	$        18,100
Income Summary		$        18,100
(to close revenue accounts)
Income Summary	$        13,100
Salaries & Wages Expense		$          8,800
Supplies Expense		$          1,300
Rent Expense		$          3,000
(to close expense accounts)
Income Summary	$          5,000
Owners Capital		$          5,000
(to close Income Summary account) (18100-13100)
Owners Capital	$          2,100
Owners Drawing		$          2,100
(to close Owners Drawing account)