Using the Information Given Below, Prepare a Balance Sheet for Rapid

question 44

Essay

Using the information given below, prepare a balance sheet 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
$\begin{array}{l}\text { Cash } & \$ 33,000 \\\text { Accounts receivable } & 14,200 \\\text { Office supplies } & 1,700 \\\text { Vehides } & 100,000\\\text { Accumulated depreciation - Vehicles }&&45,000\\\text { Accounts payable}&&11,500\\\text { Stella Grafton, Capital}&&71,000\\\text { Stella Grafton, Withdrawals } & 40,000 \\\text { Fees earned } &&155,000 \\\text { Rent expense } & 13,000\\\text { Office supplies expense } & 2,000 \\\text { Utilities expense } & 2,500 \\\text { Depreciation Expense - Vehicles } & 15,000 \\\text { Salary expense } & 50,000 \\\text { Fuel expense } & 12,000\end{array}$
$\text {Totals}\quad\quad\quad\quad\quad\quad\$ 283,400 \quad \$ 283,400$

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Definitions:

Life Cycle Cost

Encompasses all costs associated with a product or asset over its entire life, from acquisition through disposal.

Cost-plus Price

An approach where the selling price of a product is fixed by appending a set markup to the product’s per-unit cost.

Appraisal Costs

Costs associated with the inspection and testing of materials and products to ensure quality standards are met.

Defects

Imperfections or faults in a product that cause it to be unsuitable for its intended use or significantly reduce its usability.