Using the Information Given Below, Prepare an Income Statement and Owner's

question 235

Essay

Using the information given below, prepare an income statement and owner's equity statement for Rapid Car Services from the adjusted trial balance. Owner Stella Grafton did not make any additional investments in the company during the year.
Rapid Car Services Adjusted Trial Balance
For the year ended December 31
$\begin{array}{lr}\text { Cash } & \$ 33,000 \\\text { Accounts receivable } & 14,200 \\\text { Office supplies } & 1,700 \\\text { Vehides } & 100,000\\\text { Accumulated depreciation - Vehicles } && 45,000 \\\text { Accounts payable } && 11,500 \\\text { Stella Grafton, Capital } && 71,900\\\text { Stella Grafton, Withdrawals } & 40,000 \\\text { Fees earned } &&155,000 \\\text { Rent expense } & 13,000\\\text { Office supplies expense } & 2,000 \\\text { Utilities expense } & 2,500 \\\text { Depreciation Expense — Vehicles } & 15,000 \\\text { Salary expense } & 50,000 \\\text { Fuel expense } & \underline{1 2 , 0 0 0} \\\text { Totals } & \underline{\$ 283,400}&\$283,400\end{array}$

---

Definitions:

Correlations

A statistical measure that expresses the extent to which two variables change together.

Groups

Collections of subjects, items, or observations often categorized based on specific characteristics for analysis.

Two-Tailed T Test

A statistical hypothesis test used to determine if there is a significant difference between the means of two groups, with no presumption about the direction of the difference.

Null Hypothesis

A statement or hypothesis that suggests there is no statistical significance between the two variables being studied or no effect of an experimental variable.