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    Steps to Preparing a Financial Statement

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    Using the information to prepare an income statement and statement of owner's equity, please provide a list of the steps to get to the solution.

    Account Type Debit Credit
    Cash 7000
    Accounts Receivable 16500
    Office Supplies 2000
    Trucks 170000
    Accumulated depreciation 35000
    Land 75000
    Accounts Payable 11000
    Interest Payable 3000
    Long Term Notes Payable 52000
    K Webb Capital 161000
    K Webb Withdrawals 19000
    Trucking fees earned 128000
    Depreciation Expense Trucks 22500
    Salaries Expense 60000
    Office Supplies Expense 7000
    Repairs Expense 11000
    Totals 390000 390000

    The Capital account balance is $161000 at December 31, 2004

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    Solution Preview

    Here is how to proceed with the information given:

    1. Extend the trial balance amounts into two additional pairs of columns (debit and credit) titled 'balance sheet' and 'income statement'. Move each amount over to the correct statement and the correct ...

    Solution Summary

    The steps to preparing a financial statements.