Question

Use the following adjusted trial balance of Wilson Trucking Company to prepare the (1) income statement

and (2) statement of retained earnings for the year ended December 31, 2017. The Retained Earnings account

balance is \(155,000 at December 31, 2016.

Account Title Debit Credit

Cash . \) 8,000

Accounts receivable 17,500

Office supplies . 3,000

Trucks . 172,000

Accumulated depreciation—Trucks \( 36,000

Land 85,000

Accounts payable 12,000

Interest payable . 4,000

Long-term notes payable 53,000

Common stock . 20,000

Retained earnings . 155,000

Dividends . 20,000

Trucking fees earned . 130,000

Depreciation expense—Trucks . 23,500

Salaries expense . 61,000

Office supplies expense 8,000

Repairs expense—Trucks 12,000

Totals \)410,000 $410,000

Short answer

Answer:

Net Income is $25,500, Income statement shown in step 2.

Step-by-step solution

Definition of the income statement

An income statement is a statement that records all the revenues and expenses of the company.

Income Statement

Wilson Trucking Company
Income Statement
For the year ended December 31, 2017
Revenues
Truck Fees Earned		$130,000
Expenses
Depreciation Expenses- Truck	$23,500
Salaries Expense	$61,000
Office Supplies Expense	$8,000
Repair Expense- Truck	$12,000
Total expenses		$104,500
Net Income		$25,500