3. The following is the adjusted trial balance of Wilson Trucking Company. The R

Question

3. The following is the adjusted trial balance of Wilson Trucking Company.

  
The Retained Earnings account balance is $158,640 at December 31, 2016.
  
(1) Prepare the income statement for the year ended December 31, 2017.
(2) Prepare the statement of retained earnings for the year ended December 31, 2017.

Account Title Debit Credit Cash $ 8,000 Accounts receivable 16,500 Office supplies 2,000 Trucks 196,000 Accumulated depreciation—Trucks $ 40,376 Land 75,000 Accounts payable 12,000 Interest payable 3,000 Long-term notes payable 52,000 Common stock 19,000 Retained earnings 158,640 Dividends 19,000 Trucking fees earned 149,500 Depreciation expense—Trucks 26,043 Salaries expense 70,116 Office supplies expense 9,000 Repairs expense—Trucks 12,857 Totals $ 434,516 $ 434,516

Explanation / Answer

Income Statement Revenues: 149500 Trucking fees earned Expenses: Deprecition expense - Trucks 26043 Salaries expense 70116 Office supplies expense 9000 Repair expense - Trucks 12857 Total expense 118016 Net Income 31484 Statement of retained Earnings Retained earnings, December 31, 2016 158640 Add: Net Income 31484 190124 Less: Dividend 19000 Retained earnings, December 31, 2017 171124

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