The accounts in the ledger of Thornton Delivery Service contain the following balances on July 31, 2010.
|
Accounts Receivable |
$13,400 |
Prepaid Insurance |
$ 1,800 |
|
Accounts Payable |
8,400 |
Repair Expense |
1,200 |
|
Cash |
? |
Service Revenue |
15,500 |
|
Delivery Equipment |
59,360 |
Dividends |
700 |
|
Gas and Oil Expense |
758 |
Common Stock |
40,000 |
|
Insurance Expense |
600 |
Salaries Expense |
7,428 |
|
Notes Payable, due 2013 |
28,450 |
Salaries Payable |
900 |
|
Retained Earnings |
5,200 |
Instructions
(a) Prepare a trial balance with the accounts arranged as illustrated in the chapter, and fill in the missing amount for Cash.
(b) Prepare an income statement, a retained earnings statement, and a classified balance sheet for the month of July 2010.