Income Statement and Balance Sheet

On March 1, 2016, Amy Dart began Dart Delivery Service, which provides delivery of bulk mailings to the post office, neighborhood delivery of weekly newspapers, data delivery to computer service centers, and various other delivery services using leased vans. On February 28, Dart invested $60,000 of her own funds in the firm and borrowed $24,000 from her father on a six-month, non-interest-bearing note payable. The following information is available at March 31:

Accounts Receivable	$38,800		Delivery Fees Earned	$77,200
Rent Expense	6,000		Cash	51,600
Advertising Expense	3,600		Supplies Inventory	26,000
Supplies Expense	10,800		Notes Payable	24,000
Accounts Payable	4,800		Insurance Expense	3,200
Salaries Expense	25,200		Common Stock	60,000
Miscellaneous Expense	800		Retained Earnings	?

Required

a. Prepare an income statement for the month of March.

DART DELIVERY SERVICE Income Statement For the Month Ended March 31, 2016
Answer: Accounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense
Answer: Accounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense		$Answer
Expenses
Answer: Accounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	Answer
Advertising Expense	Answer
Supplies Expense	Answer
Salaries Expense	Answer
Insurance Expense	Answer
Miscellaneous Expense	Answer
Total Expenses		Answer
Answer: Accounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense		$Answer

b. Prepare a balance sheet as of March 31, 2016.

DART DELIVERY SERVICE Balance Sheet As of March 31, 2016
	ASSETS			LIABILITIES
	Answer: Accounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	$Answer		Answer: Accounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	$Answer
	Answer: Accounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	Answer		Notes payable	Answer
	Supplies	Answer		Total Liabilities		$Answer
				STOCKHOLDERS' EQUITY
				Answer: Accounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	Answer
				Answer: Accounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery Fees EarnedInsurance ExpenseMiscellaneous ExpenseNet IncomeNotes payableRevenueRent ExpenseRetained EarningsSalaries ExpenseSuppliesSupplies Expense	Answer
				Total Stockholders' Equity		$Answer
	Total Assets	$Answer		Total Liabilities and Stockholders' Equity		$Answer