Steps to Preparing a Financial Statement
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Using the information to prepare an income statement and statement of owner's equity, please provide a list of the steps to get to the solution.
Account Type Debit Credit
Cash 7000
Accounts Receivable 16500
Office Supplies 2000
Trucks 170000
Accumulated depreciation 35000
Land 75000
Accounts Payable 11000
Interest Payable 3000
Long Term Notes Payable 52000
K Webb Capital 161000
K Webb Withdrawals 19000
Trucking fees earned 128000
Depreciation Expense Trucks 22500
Salaries Expense 60000
Office Supplies Expense 7000
Repairs Expense 11000
Totals 390000 390000
The Capital account balance is $161000 at December 31, 2004
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Solution Summary
The steps to preparing a financial statements.
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Here is how to proceed with the information given:
1. Extend the trial balance amounts into two additional pairs of columns (debit and credit) titled 'balance sheet' and 'income statement'. Move each amount over to the correct statement and the correct ...
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