The followings are the balances in the accounts of Paul's Delivery Service on August 31, 2012.

Accounts Payable
$
260 Salaries Payable
240
Accounts Receivable
220 Salaries Expense
500
Capital Stock
1,160 Service Revenue
3,210
Equipment
2,980 Supplies
180
Notes Payable
190 Supplies Expense
280
Notes Receivable
130 Telephone Expense
270
Retained Earnings
?
Truck Rental Expense
500
Required
a.Prepare the income statement for Paul's Delivery Service for the month of August, 2012.
b.Prepare the company's balance sheet at August 31, 2012.
Paul's Delivery Service
Income Statement
month ended August 31, 2012
revenues
service revenue
expenses
salaries
truck rental
supplies
telephone
net income

3,210
500
500
280
270

1,550
1,660

Paul's Delivery Service

Balance Sheet
August 31,2012
assets
liabilities
accounts receivable
220 accounts payable
notes receivable
130 notes payable
supplies
180 salaries payable
equipment
2,980 total
owner's equity
capital stock
retained earnings
total
3,510 total

260
190
240
690
1,160
1,660
3,510