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 |
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