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The following is the adjusted trial balance of Wilson Trucking Company.
Account Title Debit Credit
Cash $ 5,500
Accounts receivable 16,500
Office supplies 2,000
Trucks 196,000
Accumulated depreciation—Trucks $40,376
Land 75,000
Accounts payable 9,500
Interest payable 3,000
Long-term notes payable 52,000
K. Wilson, Capital 193,270
K. Wilson, Withdrawals 19,000
Trucking fees earned 115,500
Depreciation expense—Trucks 26,043
Salaries expense 54,170
Office supplies expense 9,500
Repairs expense—Trucks 9,933
Totals $ 413,646 $ 413,646
The K. Wilson, Capital account balance is $193,270 at December 31, 2016.
Required:
(1) Prepare the income statement for the year ended December 31, 2017.
(2) Prepare the statement of owner’s equity for the year ended December 31, 2017.

Respuesta :

Answer:

PART 1: Wilson Trucking Company reported Net Income of $15,854  for the year ended December 31, 2017.

PART 2: As per the statement of changes in equity, K. Wilson Capital Account Balance as at December 31, 2017 is $190,124

* Please note that figures in brackets represent negative values.

Explanation:

PART 1    

                                           Wilson Trucking Company

                     Income Statement for the year ended December 31, 2017

Revenue

Trucking Fees                                                         $115,500  

Less Expenses:  

Depreciation expense of Trucks                                  $(26,043)

Salaries expense                                                          $(54,170)

Office supplies expense                                          $(9,500)

Repairs expense -Trucks                                          $(9,933)

 

Net Income                                                                 $15,854  

 

PART 2  

                                        Wilson Trucking Company

     Statement of changes in Equity for the year ended December 31, 2017

K. Wilson Capital Account Balance as at December 31, 2016  $193,270  

Add: Net Income for the year                                                          $15,854  

Less: K. Wilson withdrawals during the year                                  $(19,000)

K. Wilson Capital Account Balance as at December 31, 2017  $190,124  

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