Reed Delivery Service Income Statement For year ended, August 31, 2010 Delivery Service Revenue (283,470)

Lockbox Fees Earned (35,246) Less: Expenses Truck Driver's Wages Expense 122,520 Office Salaries Expense 44,400 Gas, Oil and Truck Repairs Expense 31,050 Interest Expense 7,200 Insurance Expense 3,060 Delivery Supplies Expense 13,270 Office Supplies Expense 2,274 Depreciation Expense Building 14,400 Depreciation Expense Trucks 15,450 Depreciation Expense Office Equipment 2,700 Net Income

(318,716)

256,324 (62,392)

Reed Delivery Service Balance Sheet August 31, 2010 ASSETS Cash 10,072 Accounts Receivable 29,314 Lockbox Fees Receivable 816 Prepaid Insurance 2,280 Delivery Supplies 1,430 Office Supplies 186 Land 15,000 Building 196,000 Accumulated Depreciation - Building (67,800) Trucks 103,800 Accumulated Depreciation - Trucks (46,350) Office Equipment 15,900 Accumulated Depreciation - Office Equipment (13,500) TOTAL ASSETS 247,148 LIABILITIES AND OWNER'S CAPITAL Account Payable (9,396) Unearned Lockbox Fees (2,710) Truck Driver's Wages Payable (1,920) Mortgage Payable (72,000) TOTAL LIABILITIES (86,026) OWNER'S CAPITAL N Reed Capital (128,730) Add: Net Income (62,392) N Reed Withdrawals 30,000 TOTAL OWNER'S CAPITAL (161,122) TOTAL LIABILITIES AND OWNERS CAPITAL (247,148) Totals Cash Accounts Receivable Prepaid Insurance Delivery Supplies Adjustments ADJUSTED TRIAL BALANCE 10,072 29,314 5,340 14,700 (3,060) (13,270)

10,072 29,314 2,280 1,430

Office Supplies Land Building Accumulated Depreciation Building Trucks Accumulated Depreciation Trucks Office Equipment Accumulated Depreciation Office Equipment Account Payable Unearned Lockbox Fees Mortgage Payable N Reed Capital N Reed Withdrawals Delivery Service Revenue Lockbox Fees Earned Truck Driver's Wages Expense Office Salaries Expense Gas, Oil and Truck Repairs Expense Interest Expense Insurance Expense Delivery Supplies Expense Office Supplies Expense Depreciation Expense Building Depreciation Expense Trucks Depreciation Expense Office Equipment Lockbox Fees Receivable Truck Driver's Wages Payable

2,460 15,000 196,000 (53,400) 103,800 (30,900) 15,900 (10,800) (9,396) (8,340) (72,000) (128,730) 30,000 (283,470) (28,800) 120,600 44,400 31,050 7,200

(2,274)

186 15,000 196,000 (67,800) 103,800

(14,400)

(15,450)

(46,350) 15,900

(2,700)

(13,500) (9,396)

5,630

(2,710) (72,000) (128,730) 30,000 (283,470)

(6,446) 1,920

(35,246) 122,520 44,400 31,050

3,060 13,270 2,274 14,400 15,450 2,700 816 (1,920)

7,200 3,060 13,270 2,274 14,400 15,450 2,700 816 (1,920)

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