Question

The following is the adjusted trial balance of Wilson Trucking Company. 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 30,000 Retained earnings 145,000 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 The retained earnings account balance is $145,000 at December 31, 2012. (1) Prepare the income statement for the year ended December 31, 2013.

Answer 1

Answer:

The company earns a net profit of $25,500 for the year ended December 31, 2013

Explanation:

The income statement is that statement which records expenditure & income and gains. It is also known as profit or loss account.

The income statement either comes in net profit or net loss which reflects the profit or loss of the company for a particular year.

The profit is come when revenues is higher than expenses whereas losses come when revenue is less than expenses.

The income statement for the year ended December 31, 2013 is shown below:

= Trucking fee earned - Salaries expenses - Office supplies expenses - Repair expenses - depreciation expenses

= $130,000  - $61,000 -  $8,000 - $12,000 - $23,500

= $25,500

Since, the  positive amount is come.

So, the company earns a net profit of $25,500 for the year ended December 31, 2013.