Exercise 7.18 (pages 207 208): The adjusted trial balance of Murphy%u2019s Taxi Service, Inc., follows. Determine the net income or loss for the month of May and the balance in the Retained Earnings account that would appear on the balance sheet.
|
Murphy’s Taxi Service, Inc. |
||
|
Adjusted Trial Balance |
||
|
May 31, 2010 |
||
|
Debits |
Credits |
|
|
Cash |
$ 1,920 |
|
|
Prepaid Insurance |
$ 690 |
|
|
Automobiles |
$29,500 |
|
|
A/D %u2013 Automobiles |
$12,800 |
|
|
Capital Stock |
$15,000 |
|
|
Retained Earnings |
$ 3,720 |
|
|
Passenger fee revenue |
$ 4,250 |
|
|
Salary expense |
$ 2,400 |
|
|
Fuel expense |
$ 485 |
|
|
Depreciation expense |
$ 615 |
|
|
Repairs and maintenance expense |
$ 160 |
|
|
Totals |
$35,770 |
$35,770
|