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

Here's a hint:

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

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