The accounts in the ledger of Rapid Delivery Service contain

The accounts in the ledger of Rapid Delivery Service contain the following balances on July 31, 2017 Accounts Receivable Accounts Payable Cash Equipment Maintenance and Repairs Expense Insurance Expense s 3,500 17,400 860 40,200 $14,900 Prepaid Insurance 9.900 Service Revenue ? Dividends 59,560 Common Stock Salaries and Wages Expense Salaries and Wages Payable Retained Earnings (July 1, 8,628 940 6,500 3,858 740 Notes Payable (due 2020) 29,650 2017) Prepare a trial balance RAPID DELIVERY SERVICE Trial Balance Debit Credit

Solution

                                    Trial balance Particular DR. CR. Account Rec 14900 - Account payable - 9900 Cash (Balancing Figure) 12544 - Equipment 59560 - Main and repair expense 3858 - Insurance expense 740 - Notes payable - 29650 Prepaid insurance 3500 - Service revenue - 17400 Dividend 860 - Common Stock - 40200 Salaries and wages 8628 - Salaries and wages Payable - 940 Retained Earning (opening) - 6500 TOTAL 104590 104590                       Income Statement Item Amount $ Service Revenue 17400 Total Revenue 17400 Repair Expense 3858 Insurance expense 740 Salaries 8628 Total Expense 13226 Net income 4174                      Retained Earning Statement Item Amount Opening Retained Earning 6500 Add income during year 4174 Total 10674 Less Dividend paid 860 Retained earning balance at end of month 9814                                                     Balance sheet Asset Amount Liability Amount Cash 12544 Account payable 9900 Account Rec. 14900 Notes payable 29650 Equipement 59560 Common Stock 40200 Prepaid insurance 3500 Retained Earning 9814 Salaries payable 940 Total Assest 90504 Total Liability 90504