Chapter 03 – Adjusting Accounts for Financial Statements
Problem 3-5B (Concluded)
SPEEDY COURIER
Balance Sheet
December 31, 2013
Assets
Cash …………………………………………………………….
$ 58,000
Accounts receivable ……………………………………..
120,000
Interest receivable …………………………………………
7,000
Notes receivable (due in 90 days)…………………….
210,000
Office supplies ……………………………………………..
22,000
Trucks ………………………………………………………….
$134,000
Accumulated depreciation—Trucks ……………….
(58,000)
76,000
Equipment …………………………………………………….
270,000
Accumulated depreciation—Equipment …………
(200,000)
70,000
Land ……………………………………………………………..
100,000
Total assets ………………………………………………….
$663,000
Liabilities
Accounts payable …………………………………………
$134,000
Interest payable …………………………………………….
20,000
Salaries payable ……………………………………………
28,000
Unearned delivery fees ………………………………….
120,000
Long-term notes payable ………………………………
200,000
Total liabilities ………………………………………………
502,000
Equity
Common stock ……………………………………………..
15,000
Retained earnings …………………………………………
146,000
Total liabilities and equity ……………………………..
$663,000
Part 2
Profit margin = $86,000 / $645,800 = 13.3%
