The following is a list of accounts, in alphabetical order, for Speedy Service Inc. at July 31, 2018:
Accounts payable...........................................................$ 9,500
Accounts receivable........................................................14,000
Accumulated depreciation-equipment.........................21,400
Bank loan payable, due 2020..........................................39,000
Cash..................................................................................8,000
Common shares...............................................................38,000
Depreciation expense........................................................9,700
Dividends declared..............................................................800
Equipment.......................................................................99,000
Held for trading investments..........................................20,000
Income tax expense.......................................................$ 3,000
Insurance expense.............................................................1,800
Interest expense................................................................3,600
Prepaid insurance.................................................................200
Rent expense.....................................................................9,000
Repairs and maintenance expense...................................10,450
Retained earnings............................................................20,850
Salaries expense..............................................................25,000
Salaries payable....................................................................800
Service revenue...............................................................75,000
Additional information:
All accounts have a normal balance. During the year, the company issued common shares for $11,000.
Instructions
(a) Prepare a trial balance.
(b) Prepare an income statement, statement of changes in equity, and statement of financial position for the year.
(c) If you did not know the retained earnings amount at August 1, 2017, in the trial balance, could you have prepared the financial statements in part (b)? Explain.