Problem - Below is another account question that is asking me to prepare an income statement, statement of owner's equity and a balance sheet. I'm still struggling with the steps involved and was hoping you could help me with this problem so, I can get a better understanding.
Hanson Storage Adjusted Trial Balance December 31
Cash 3050
Accounts receivable 400
Prepaid Insurance 830
Office supplies 80
Accumulated depreciation-office equipment 1,000
Buildings 98,000
Accumulated depreciation-buildings 28,000
Land $115,000
Wages payable 880
Property taxes payable 1,400
Interest payable 2,200
Unearned rent 460
Long-term notes payable 150,000
Mary Hanson, Capital 40,340
Mary Hanson, Withdrawals 21,000
Rent earned 57,500
Wages expense 25,000
Utilites expense 1,900
Property taxes expense 2,400
Insurance expense 800
Office supplies expense 250
Depreciation expense-office equipment 400
Depreciation expense-buildings 5,570
Interest expense 3,000
Totals 281,880 281,880
a. Prepare an income statement for the adjusted trial balance of Hanson Storage.
b. Prepare a statement of owner's equity from the adjusted trial balance of Hanson Storage. Ms. Hanson's capital account balance of $40,340 consists of a $30,340 beginning-year balance plus a $10,000 investment during the current year.
c. Prepare a balance sheet from the adjusted trial balance of Hanson Storage.