1. Prepare A trial balance with the accounts arranged in financial statement ord
ID: 2398188 • Letter: 1
Question
1. Prepare A trial balance with the accounts arranged in financial statement order (assets, liabilities, equity, revenue, expenses) 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.
See 2 Excel pictures for formatting. 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 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) $13,400 8,400 12,424 80,000 1,958 900 20,640 28,450 2,200 15,500 700 40,000 428 820 5,200 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
1-
Trial Balance
Explanation
Debit
credit
Accounts receivables
13400
cash
12424
prepaid insurance
2200
equipment
80000
Accumulated depreciation
20640
accounts payable
28450
notes payable
8400
salaries payable
820
common stock
40000
dividend
700
retained earnings
5200
service revenue
15500
salaries and wages expense
7428
insurance expense
900
maineteance and repair expense
1958
total
119010
119010
2-
Income statement
service revenue
15500
Expenses
salaries and wages expense
7428
insurance expense
900
maineteance and repair expense
1958
total of expenses
10286
net income
5214
Balance Sheet
Assets
Current Assets
Accounts receivables
13400
cash
12424
prepaid insurance
2200
total of current assets
28024
equipment net off accumulated depreciation
59360
total of assets
87384
Liabilities and shareholders equity
Current liabilities
accounts payable
28450
salary payable
820
total of current liabilities
29270
notes payable
8400
total of liabilities
37670
Shareholders equity
common stock
40000
retained earnings
9714
total of shareholders equity
49714
total of liabilities and shareholders equity
87384
statement of retained earnings
beginning balance of retained earning
5200
dividend to be paid
-700
add net income
5214
year end balance in retained earnings
9714
1-
Trial Balance
Explanation
Debit
credit
Accounts receivables
13400
cash
12424
prepaid insurance
2200
equipment
80000
Accumulated depreciation
20640
accounts payable
28450
notes payable
8400
salaries payable
820
common stock
40000
dividend
700
retained earnings
5200
service revenue
15500
salaries and wages expense
7428
insurance expense
900
maineteance and repair expense
1958
total
119010
119010
2-
Income statement
service revenue
15500
Expenses
salaries and wages expense
7428
insurance expense
900
maineteance and repair expense
1958
total of expenses
10286
net income
5214
Balance Sheet
Assets
Current Assets
Accounts receivables
13400
cash
12424
prepaid insurance
2200
total of current assets
28024
equipment net off accumulated depreciation
59360
total of assets
87384
Liabilities and shareholders equity
Current liabilities
accounts payable
28450
salary payable
820
total of current liabilities
29270
notes payable
8400
total of liabilities
37670
Shareholders equity
common stock
40000
retained earnings
9714
total of shareholders equity
49714
total of liabilities and shareholders equity
87384
statement of retained earnings
beginning balance of retained earning
5200
dividend to be paid
-700
add net income
5214
year end balance in retained earnings
9714
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