Prepare a trial balance and financial statements The accounts in the ledger of B
ID: 2521354 • Letter: P
Question
Prepare a trial balance and financial statements The accounts in the ledger of Bastin Delivery Service contain the following balances on July 31, 2017 Accounts Receivable Accounts Payable Cash Equipment Maintenance and Repairs Expense 1,958 Insurance Expense Accumulated Depreciation Notes Payable (due 2020) Prepaid Insurance Service Revenue Dividends Common Stock Salaries and Wages Expense Salaries and Wages Payable Retained Earnings (July 1, 2017 5,200 $13,400 8,400 80,000 900 20,640 28,450 2,200 15,500 700 40,000 7,428 820 Instructions 1. Prepare a trial balance with the accounts arranged in financial statement order (assets, liabilities, equity, revenue, expense) and fill in the missing amount for Cash 2. Prepare an income statement, a retained earnings statement, and a classified balance sheet for the month of July 2017.Explanation / Answer
Trial balance Debit credit Cash ($98,370 – Debit total without Cash$106586 (8,216) Accounts Receivable 13400 Prepaid Insurance 2200 Equipment 80000 Accounts Payable 8400 Salaries and Wages Payable 820 Notes Payable (due 2020) 28450 Common Stock 40000 Retained Earnings 5200 Dividends 700 Service Revenue 15500 Salaries and Wages Expense 7428 Maintenance and Repairs Expense 1958 Insurance Expense 900 Total 98,370 98370 2 Income statement Income Service revenue 15500 Expenses Salaries and Wages Expense 7428 Maintenance and Repairs Expense 1958 Insurance Expense 900 10286 Net income 5214 3 Retained earning statement Retained earnings july 1 , 2017 5200 + Net income 5214 10414 - dividend 700 9714 4 Balance sheet current assets cash (8,216) A/c receivable 13400 prepaid insurance 2200 total curreent assets 7,384 plant and euipment 80000 Total assets 87,384 Liabilites and shareholders equity Current liabilties A/c Payable 8400 Salaries payable 820 total current liabilities 9220 Long term liab. Notes payable 28450 Total liabilities 37670 shareholders equity Common stock 40000 Retianed earnings 9714 Total Liabilites and shareholders equity 87384