The Accounts in the Ledger of Dependable Delivery Service Contain

question 54

Essay

The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2014. $\begin{array}{lrlr}\text { Accounts Receivable } & \$ 11,400 & \text { Prepaid Insurance } & \$ 1,800 \\\text { Accounts Payable } & 7,400 & \text { Maintenance and Repairs Expense } & 1,200 \\\text { Cash } & 15,940 & \text { Service Revenue } & 15,500 \\\text { Equipment } & 59,360 & \text { Dividends } & 800 \\\text { Utilities Expense } & 950 & \text { Common Stock } & 40,000 \\\text { Insurance Expense } & 600 & \text { Salaries and Wages Expense } & 8,400 \\\text { Notes Payable, due 2017 } & 31,450 & \text { Salaries and Wages Payable } & 900 \\& & \text { Retained Earnings } & 5,200\\&& \text { (July 1, 2014) } \end{array}$ Instructions
Prepare an income statement and a retained earnings statement for the month of July 2014, and a classified balance sheet for July 31.

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Definitions:

Under Seal

A formal method of validating a document by fixing a wax seal, signifying it has legal efficacy or relevance.

Implied

Something suggested or understood without being directly expressed.

Writing

The act or medium of expressing thoughts in visible letters or characters; utilized in law to refer to the embodiment of expressions in a tangible form.

Enforceable

Describes a legal agreement or provision that can be upheld by a court or other legal authority.