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:

Process Cost System

An accounting methodology used for homogenous products that accumulates costs in each process or department and assigns them to units of product evenly.

Production Cost Reports

Documents summarizing the costs associated with production processes, including materials, labor, and overhead.

Equivalent Units

A concept used in cost accounting to express the amount of materials consumed or labor utilised in terms of fully completed units.

Raw Materials

The basic materials from which a product is made, which are processed in a manufacturing operation to complete a finished good.