Question

The following is the adjusted trial balance of Wilson Trucking Company Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation-Trucks Land Accounts payable Interest payable Long-term notes payable K. Wilson, Capital K. Wilson, Withdrawals Trucking fees earned Depreciation expense-Trucks Salaries expense Office supplies expense Repairs expense-Trucks Totals Debit Credit 5,500 16,500 2,000 166,000 $ 34, 196 75,000 9,500 3,000 52,000 146,333 19,000 149,500 22,056 70,116 5,500 12,857 $ 394,529 $ 394,529 The K. Wilson, Capital account balance is $146.333 at December 31, 2016. (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

Answer 1

1. Income Statement
For the year ended Dec. 31, 2017
Trucking fees earned		149500
Less: Expenses:
Depreciation expense-Trucks	22056
Salaries expense	70116
Office Supplies expense	5500
Repairs expense	12857	110529
Net Income		38971

2. Statement of Owner's Equity
as at Dec 31, 2017
K. Wilson , Capital	146333
Less: Drawings	19000	127333
Net Income		38971
Total Owner's Equity		166304

Wilson Trucking Company
Balance Sheet
as at Dec 31, 2017
Cash	5500
Accounts Receivable	16500
Office Supplies	2000
Total Current assets		24000
Land		75000
Trucks	166000
Less: Acc. Depn.-Trucks	34196	131804
Total assets		230804
Liabilities & Owner's Equity
Accounts payable	9500
Interest payable	3000
Total Current liabilities		12500
Long-term notes payable		52000
Total Liabilities		64500
Owner's Equity
K. Wilson , Capital	146333
Less: Drawings	19000	127333
Net Income		38971
Total Owner's Equity		166304
Total Liabilities & Owner's Equity		230804