The adjusted trial balance of Blitz Delivery Services, Inc., at December 31, 19X8 follows at the top of page 121 .

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1. Prepare Blitz's 19X8 income statement, statement of retained earnings, and balance sheet. List expenses in decreasing order on the income statement and show total liabilities on the balance sheet. Draw arrows linking the three financial statements.

2. How will what you learned in this problem help you manage a business?

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BLITZ DELIVERY SERVICES, INC. ADJUSTED TRIAL BALANCE DECEMBER 31, 19X8 Cash Accounts receivable Prepaid rent. Supplies. Equipment $ 2,340 41,490 1,350 970 75,690 Accumulated depreciation-equipment. Office furniture.. Accumulated depreciation-office furniture Accounts payable $ 22,240 24,100 18,670 13,600 Unearned service revenue. Interest payable.. Salary payable 4,520 2,130 930 Note payable... Common stock.. 45,000 12,000 Retained earnings. 20.380 Dividends.. 48,000 Service revenue. 195,790 Depreciation expense-equipment.. 11,300 Depreciation expense-office furniture.. 2,410 Salary expense. 102,800 Rent expense 12,000 Interest expense Utilities expense. Insurance expense. Supplies expense Total 4,2001 3,770 3,150 1,690 $335,260 $335,260