The Gold Delivery Company specializes in delivering products from local manufacturers to retail shoes. At the end of November 2003, the company's general ledger carries the following balances (not separates at to debit and credit balances):
Accounts Payable - $10,200
Account Receivable - $23,000
Capital Stock - $25,000
Cash - $8,000
Delivery Equipment - $22,000
Deliver Expenses (gas, oil) - $1,300
Delivery Revenues - $12,000
Insurance Expenses - $500
Loans Payable $10,500
Notes Payable - $3,500
Office Equipment - $3,700
Prepaid Insurance - $2,000
Rent Expense - $1,500
Retained Earnings (at October 31) - $8,000
Wages Expense - $7,200
Construct, in conventional format, both an income statement for the month of November 2003 and a balance sheet at month-end, using the data above. Derive Gold Delivery’s profit for the month, and make sure the balance sheet balances.
Income Statement:
Income Statement | ||
For the Month Ended November 2003 | ||
Delivery Revenues | $12,000 | |
Expenses: | ||
Deliver Expenses (gas, oil) | $1,300 | |
Insurance Expenses | $500 | |
Rent Expense | $1,500 | |
Wages Expense | $7,200 | |
Total expenses | $10,500 | |
Net income | $1,500 |
Balance Sheet:
Balance Sheet | |||
At November 30,2003 | |||
Assets | Liabilities | ||
Cash | $8,000 | Accounts Payable | $10,200 |
Account Receivable | $23,000 | Loans Payable | $10,500 |
Prepaid Insurance | $2,000 | Notes Payable | $3,500 |
Delivery Equipment | $22,000 | Total liabilities | $24,200 |
Office Equipment | $3,700 | ||
Stockholder's equity | |||
Capital Stock | $25,000 | ||
Retained Earnings [8000+1500] | $9,500 | ||
Total stockholder's equity | $34,500 | ||
Total assets | $58,700 | Total liabilities and stockholder's equity | $58,700 |
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