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Problem 2. (9 Points). Using the information given below, prepare an income statement and statement of retained earnings for Rapid Car Services from the adjusted

Problem 2. (9 Points).

Using the information given below, prepare an income statement and statement of retained earnings for Rapid Car Services from the adjusted trial balance.

Rapid Car Services

Adjusted Trial Balance

For the year ended December 31

Cash .

$33,000

Accounts receivable .

14,200

Office supplies .

1,700

Vehicles ..

100,000

Accumulated depreciation Vehicles

45,000

Accounts payable

11,500

Common stock ..

20,000

Retained earnings ..

51,900

Dividends ...

40,000

Fees earned ..

155,000

Rent expense ...

13,000

Office supplies expense ...

2,000

Utilities expense ..

2,500

Depreciation Expense Vehicles..

15,000

Salary expense .

50,000

Fuel expense

Totals

12,000

$283,400

________

$283,400

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