Question

The accounts in the ledger of Steve's Delivery Service contain the following balances on July 31, 2017, Accounts Receivable$11,400 Prepaid Insurance $ 2,300 Accounts Payable 7,400 Maintenance/Repairs Expense 1,400 25,500 800 Cash 17,940 Service Revenue Equipment 59,360 Supplies expense 900 Supplies Gasoline Expense Insurance Expense600 Salaries and Wages Expense 6,400 Notes Payable, due 3,800 31,450 Salaries and Wages Payable 900 12/31/18 Unearned revenue 8,650 Steve Smith, Capital 7/1/17 31,000 Instructions Prepare an income statement, a statement of owner's equity, and a balance sheet for the month of July 2017

Answer 1

Income statement

For the month July 2017

Particulars		Amount($)
Service revenue		25500
Less: Expenses:
Repairs	1400
Supplies exps.	800
Salary & Wages	6400
Gasoline exps.	900
Insurance	600
Total Expenses:		10100
Profit		15400

Balance Sheet

as on July 2017

Particulars	Amount($)
Current Assets:
Cash	17940
Account receivables	11400
Prepaid Insurance	2300
Supplies	3800
Total Current Assets:(A)	35440
Non Current Assets:
Equipment	59360
Total non current Asset(B)	59360
Total Assets: (A+B)	94800
Total Liabilities & Shareholder's Equity
Current Liabilities:
Account Payable	7400
Notes Payable	31450
Salaries & Wages payable	900
Unearned Revenue	8650
Total Current Liabilities:	48400
Total Liabilities:(A)	48400
Shareholder's Equity:
Share Capital	31000
Profit	15400
Total Shareholder's Equity:(B)	46400
Total Liabilities & Shareholder's Equity:(A+B)	94800