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.

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  

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy

answer; the nav calculated at the market close at 4: 00 pm new york time;