Problem
Preparing financial statements from the adjusted trial balance and calculating profit margin
The adjusted trial balance for Speedy Courier as of December 31, 2015, follows.
|
|
Debit
|
Credit
|
|
Cash
|
$ 58.000
|
|
|
Accounts receivable
|
120.000
|
|
|
Interest receivable
|
7.000
|
|
|
Notes receivable (due In 90 days)
|
210.000
|
|
|
Office supplies
|
22.000
|
|
|
Trucks
|
134,030
|
|
|
Accumulated depreciation -Trudcs
|
|
$ 58.000
|
|
Equipment
|
270.000
|
|
|
Accumulated depreciation-Equipment
|
|
200.000
|
|
Land
|
100.000
|
|
|
Accounts payable
|
|
134.000
|
|
Interest payable
|
|
20.000
|
|
Salaries payable
|
|
28.000
|
|
Unearned delivery fees
|
|
120.000
|
|
Long-term notes payable
|
|
200.000
|
|
L. Horace. Capital
|
|
125.000
|
|
L. Horace. Withdrawals
|
50.000
|
|
|
Delivery fees earned
|
|
611.800
|
|
Interest earned
|
|
34.000
|
|
Depreciation expense-Trucks
|
29.000
|
|
|
Depreciation expense-Equipment
|
48.000
|
|
|
Salaries expense
|
74.000
|
|
|
Wages expense
|
300.000
|
|
|
Interest expense
|
15.000
|
|
|
Office supplies expense
|
31.000
|
|
|
Advertising expense
|
27.200
|
|
|
Repairs expense-Trucks
|
35.600
|
|
|
Totals
|
51.530.800
|
51.530.800
|
Required
1. Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31, 2015, (b) the statement of owner's equity for the year ended December 31, 2015, and (c) the balance sheet as of December 31, 2015.
2. Calculate the profit margin for year 2015.