s 5,100 16,500 2,ee0 169,0 Accounts receivable Office supplies Accunulated depre
ID: 2330649 • Letter: S
Question
s 5,100 16,500 2,ee0 169,0 Accounts receivable Office supplies Accunulated depreciation-Trucks 34,814 75,809 Accounts payable Interest payable Long-ters notes paysble Conmon stock Retained earnings Dividends Trucking fees earned Depreciation expense-Trucks 9,100 ,000 52,899 17,e0 138,661 19.000 144,00 Office supplies expense Repairs expense-Trucks 9,a08 397,975 5397,9 The Retsined Eamings account balance is $138.06t at December 31, 206 Prepare the income statement for the year ended December 31, 2017 2) Prepare the statement of retained earmings for the yer ended December 3t 2017 entering yeur the taks belowExplanation / Answer
WILSON TRUCKING COMPANY
Income Statement
For year ended December 31 2017
Service Revenue
$ 144,000.00
Less: Operating Expenses
Depreciation Expense-Truck
$ 22,455.00
Salaries Expenses
$ 67,536.00
Office Supplies Expenses
$ 9,000.00
Repairs Expense-Truck
$ 12,384.00
Total Operating Expenses
$ 111,375.00
Net Income
$ 32,625.00
WILSON TRUCKING COMPANY
Statement of Retained Earnings
For year ended December 31 2017
Retained Earnings, December 31, 2016
$ 138,061.00
Add: Net income Earned During the Year
$ 32,625.00
Subtotal
$ 170,686.00
Less: Dividends
$ (19,000.00)
Retained Earnings, December 31, 2017
$ 151,686.00
Dividends are paid out of retained earnings that is why Dividends is shown as a negative adjustment in Retained earnings Statement.
WILSON TRUCKING COMPANY
Income Statement
For year ended December 31 2017
Service Revenue
$ 144,000.00
Less: Operating Expenses
Depreciation Expense-Truck
$ 22,455.00
Salaries Expenses
$ 67,536.00
Office Supplies Expenses
$ 9,000.00
Repairs Expense-Truck
$ 12,384.00
Total Operating Expenses
$ 111,375.00
Net Income
$ 32,625.00
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