Using the information given below, prepare an income statement and statement of retained earnings for Rapid Car Services from the adjusted trial balance. Rapid Car ServicesAdjusted Trial BalanceFor the year ended December 31Cash …………………………………………….$33,000?Accounts receivable …………………………….14,200?Office supplies ………………………………….1,700?Vehicles ………………………………………..100,000?Accumulated depreciation - Vehicles …………?45,000Accounts payable ………………………………?11,500Common stock …………………………..?20,000Retained earnings …………………………..?51,900Dividends …………………...40,000?Fees earned

……………………………………..?155,000Rent expense …………………………………...13,000?Office supplies expense ………………………...2,000?Utilities expense ………………………………..2,500?Depreciation Expense - Vehicles……………..15,000?Salary expense ………………………………….50,000?Fuel expense ……………………………………Totals……………………………………  12,000  $283,400________$283,400

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Rapid Car Services
Income Statement
For the year ended December 31

Revenue:??
  Fees earned…………………………………........?$155,000
Expenses:  ?
  Rent expense …………………………………..$13,000?
  Office supplies expense………………………….2,000?
  Utilities expense ………………………………....2,500?
  Depreciation expense - Vehicles………....15,000?
  Salary expense………………....50,000?
  Fuel expense ………………………………….12,000?
  Total expenses………………………... ……………?  94,500
Net income ………………………………………….?  $60,500

Rapid Car Services
Statement of Retained Earnings
For the year ended December 31
Retained earnings, January 1$ 51,900
Plus: Net income  60,500
?$112,400
Less: Dividends   40,000
Retained earnings, December 31$ 72,400

Business

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