Question

The following is the adjusted trial balance for Thompson on December 31, 2019.

Thompson Trucking

Adjusted Trial Balance

December 31, 2019

	Debit	Credit
Cash	41,050
Accounts receivable	7,500
Packing supplies	800
Prepaid rent	450
Truck	26,000
Accum. Amortization, Truck		1,800
Computer	1,200
Accum. Amortization, Computer		150
Accounts payable		3,200
Salary payable		1,900
Unearned revenue		2,000
J. Thompson, Capital		66,000
J. Thompson, Withdraw	500
Delivery Fees earned		17,500
Amortization expense, truck	1,800
Amortization expense, computer	150
Rent expense	1,350
Salary expense	5,300
Utility expense	900
Telephone expense	850
Packing supplies expense	4,700
Total	92,550	92,550

Prepare an income statement, statement of changes in equity and a balance sheet for the first three months of business ending December 31, 2019. (15 Marks each for the statements)

Answer 1

Thompson Trucking Company
Income Statement
For year ended Dec 31, 2019
Particulars	Amount
Delivery fees earned	$17,500.00
Expenses:
Amortisation expense - Trucks	$1,800.00
Amortisation expense - Computer	$150.00
Salaries Expense	$5,300.00
UtilitiesExpense	$900.00
Telephoen Expens	$850.00
Packing & Supplies Expense	$4,700.00
Rent Expense	$1,350.00
Net Income	$2,450.00
Thompson TRUCKING COMPANY
Balance Sheet
31-Dec-19
Assets
Current Assets:
Cash	$41,050.00
Accounts Receivables	$7,500.00
Packing supplies	$800.00
Prepaid Rent	$450.00
total Current Asssets		$49,800.00
Property, Plant & Equipment:
Truck	$26,000.00
Less: Accumulated Amortisation	$1,800.00	$24,200.00
Computer	$1,200.00
Less: Accumulated Amortisation	$150.00	$1,050.00
total Property Plant & Equipment		$25,250.00
total Assets		$75,050.00
Liabilities
Current Liabilities:
Accounts payable	$3,200.00
Salary payable	$1,900.00
Unearned Revenue	$2,000.00
total Current Liabilities		$7,100.00
Long Term Liabilities:
total Long Term liabilities		$0.00
total Liabilities		$7,100.00
Equity
total Equity		$67,950.00
total Liabilities & Equity		$75,050.00
Statement of Change in Equity
Beg Balance	$66,000.00
Ad: Net Income	$2,450.00
Less: drawing	-$500.00
Ending Balance	$67,950.00