The accounts in the ledger of Bastin Delivery Service contain the following balances on July 31, 2014.

Accounts Receivable $13,400 Prepaid Insurance $ 2,200 Accounts Payable 8,400 Service Revenue 15,500 Cash ? Dividends 700 Equipment 59,360 Common Stock 40,000 Maintenance and Salaries and Wages Expense 7,428 Repairs Expense 1,958 Salaries and Wages Payable 820 Insurance Expense 900 Retained Earnings 5,200 Notes Payable (due 2017) 28,450 (July 1, 2014)

Instructions

(a) Prepare a trial balance with the accounts arranged as illustrated in the chapter, and fill in the missing amount for Cash.

(b) Prepare an income statement, a retained earnings statement, and a classified balance sheet for the month of July 2014.

AppendixLO1