The Accounts in the Ledger of Dependable Delivery Service Contain

question 113

Essay

The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2014. $\begin{array}{lrlr}\text { Accounts Receivable } & \$ 16,400 & \text { Prepaid Insurance } & \$ 1,800 \\\text { Accounts Payable } & 12,400 & \text { Maintenance and Repairs Expense } & 1,200 \\\text { Cash } & ? & \text { Service Revenue } & 13,500 \\\text { Equipment } & 59,360 & \text { Dividends } & 800\\\text { Gasoline Expense } & 950 & \text { Common Stock } & 50,000 \\\text { Insurance Expense } & 600 & \text { Salaries and Wages Expense } & 6,400 \\\text { Notes Payable, due 2017 } & 28,450 & \text { Salaries and Wages Payable }&900 \\& & \text { Retained Earnings }& 5,200 \\&& \text { (July 1, 2014) } \end{array}$ Instructions
Prepare a trial balance with the accounts arranged as illustrated in the chapter, and fill in the missing amount for Cash.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a market.

Own Name

The legal identification used by an individual or entity for conducting transactions or signing contracts.

Paid-In Capital

The amount of money a company has received from shareholders in exchange for stock.

Organizational Costs

Expenses related to the formation of a corporation or business entity, including legal fees, registration fees, and promotional expenses.