Using the Information Given Below, Prepare an Income Statement and Owner's

Essay

Using the information given below, prepare an income statement and owner's equity statement for Rapid Car Services from the adjusted trial balance. Owner Stella Grafton did not make any additional investments in the company during the year.
Rapid Car Services Adjusted Trial Balance
For the year ended December 31
$\begin{array}{lr}\text { Cash } & \$ 33,000 \\\text { Accounts receivable } & 14,200 \\\text { Office supplies } & 1,700 \\\text { Vehides } & 100,000\\\text { Accumulated depreciation - Vehicles } && 45,000 \\\text { Accounts payable } && 11,500 \\\text { Stella Grafton, Capital } && 71,900\\\text { Stella Grafton, Withdrawals } & 40,000 \\\text { Fees earned } &&155,000 \\\text { Rent expense } & 13,000\\\text { Office supplies expense } & 2,000 \\\text { Utilities expense } & 2,500 \\\text { Depreciation Expense — Vehicles } & 15,000 \\\text { Salary expense } & 50,000 \\\text { Fuel expense } & \underline{1 2 , 0 0 0} \\\text { Totals } & \underline{\$ 283,400}&\$283,400\end{array}$