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
$\begin{array}{lr}\text { Cash } & \$ 33,000 \\\text { Accounts receivable } & 14,200 \\\text { Office supplies } & 1,700 \\\text { Vehides } & 100,000\\\text { Accumulated depreciation - Vehicles } && 45,000 \\\text { Accounts payable } && 11,500 \\\text { Stella Grafton, Capital } && 71,900\\\text { Stella Grafton, Withdrawals } & 40,000 \\\text { Fees earned } &&155,000 \\\text { Rent expense } & 13,000\\\text { Office supplies expense } & 2,000 \\\text { Utilities expense } & 2,500 \\\text { Depreciation Expense — Vehicles } & 15,000 \\\text { Salary expense } & 50,000 \\\text { Fuel expense } & \underline{1 2 , 0 0 0} \\\text { Totals } & \underline{\$ 283,400}&\$283,400\end{array}$

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Definitions:

Chest Pain

A discomfort or pain that can be felt anywhere along the front of the body between the upper abdomen and the neck.

Telephone Triage

A process of determining the level of urgency of each incoming telephone call and how it should be handled.

Written Guidelines

Documents or instructions that provide specific advice or rules on how to perform tasks or handle situations, often used in professional and regulatory contexts.

Incoming Call

A telephone call that is being received by the call receiver rather than initiated by them.