Use the information in this adjusted trial balance to prepare Webb Trucking
Company’s (1) income statement, and (2) statement of owner’s equity. The K. Webb, Capital account balance is $161,000 at December 31, 2004 :confused:

Account Title Debit Credit
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,000
Accounts receivable . . . . . . . . . . . . . . . . . . . 16,500
Office supplies . . . . . . . . . . . . . . . . . . . . . . 2,000
Trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000
Accumulated depreciation—Trucks . . . . . . . ……………………. $ 35,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000
Accounts payable . . . . . . . . . . . . . . . . . . . . ……………………….. 11,000
Interest payable . . . . . . . . . . . . . . . . . . . . . . …………………………3,000
Long-term notes payable . . . . . . . . . . . . . ………………………… . 52,000
K.Webb, Capital . . . . . . . . . . . . . . . . . . . . . ………………………..161,000
K.Webb, Withdrawals . . . . . . . . . . . . . . . . . 19,000
Trucking fees earned . . . . . . . . . . . . . . . . . . ……………………….128,000
Depreciation expense—Trucks . . . . . . . . . . . 22,500
Salaries expense . . . . . . . . . . . . . . . . . . . . . 60,000
Office supplies expense . . . . . . . . . . . . . . . . 7,000
Repairs expense—Trucks . . . . . . . . . . . . . . . 11,000
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $390,000 $390,000

Heres a hint:

Income Statement= (Sales Revenue)-(Expenses)-(Taxes)

Statement of Owners Equity= (Capital Stock)+(Additional Paid in Capital)+(Retained Earnings)-(Treasury Stock)