1. Prepare an income statement from the adjusted trial balance of Hanson Storage.2. 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.3. Prepare a classified balance sheet from the adjusted trial balance of Hanson Storage. ### Hanson Storage Adjusted Trial Balance **As of December 31, [Year]**| **Account** | **Debit** | **Credit** ||------------------------------------|------------|------------|| Cash | 3,050 | || Accounts Receivable | 400 | || Prepaid Insurance | 830 | || Office Supplies | 80 | || Office Equipment | 4,200 | || Accumulated Depreciation - Office Equip. | | 1,100 || 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 || M. Hanson, Capital | | 40,340 || M. Hanson, Withdrawals | 21,000 | || Rent Earned | | 57,500 || Wages Expense | 25,000 | || Utilities Expense | 1,900 | || Property Taxes Expense | 2,400 | || Insurance Expense | 800 | || Office Supplies Expense | 250 | || Depreciation Expense - Office Equip. | 400 | || Depreciation Expense - Buildings | 5,570 | || Interest Expense | 3,000 | || **Totals** | **281,880**| **281,880**|#### Explanation:This is an adjusted trial balance for Hanson Storage, showing all account balances as of December 31st. This balance includes both debits and credits, ensuring they are equal, which confirms the accounts are balanced properly post-adjustments.- **Accounts like Cash, Accounts Receivable, Prepaid Expenses, Buildings, and Land are recorded as assets and show their debit balances.**- **Accumulated Depreciation accounts are shown as

Name: 1. Prepare an income statement from the adjusted trial balance of Hans
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: 1. Prepare an income statement from the adjusted trial balance of Hanson Storage.2. 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 beginnin

Answer 1 Preparation of income statement from the adjusted trial balance is as follows:

Answered: Hanson Storage adjusted trial balance…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

1. Prepare an income statement from the adjusted trial balance of Hanson Storage.

2. 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.

3. Prepare a classified balance sheet from the adjusted trial balance of Hanson Storage.

### Hanson Storage Adjusted Trial Balance
**As of December 31, [Year]**

| **Account** | **Debit** | **Credit** |
|------------------------------------|------------|------------|
| Cash | 3,050 | |
| Accounts Receivable | 400 | |
| Prepaid Insurance | 830 | |
| Office Supplies | 80 | |
| Office Equipment | 4,200 | |
| Accumulated Depreciation - Office Equip. | | 1,100 |
| 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 |
| M. Hanson, Capital | | 40,340 |
| M. Hanson, Withdrawals | 21,000 | |
| Rent Earned | | 57,500 |
| Wages Expense | 25,000 | |
| Utilities Expense | 1,900 | |
| Property Taxes Expense | 2,400 | |
| Insurance Expense | 800 | |
| Office Supplies Expense | 250 | |
| Depreciation Expense - Office Equip. | 400 | |
| Depreciation Expense - Buildings | 5,570 | |
| Interest Expense | 3,000 | |
| **Totals** | **281,880**| **281,880**|

#### Explanation:
This is an adjusted trial balance for Hanson Storage, showing all account balances as of December 31st. This balance includes both debits and credits, ensuring they are equal, which confirms the accounts are balanced properly post-adjustments.

- **Accounts like Cash, Accounts Receivable, Prepaid Expenses, Buildings, and Land are recorded as assets and show their debit balances.**
- **Accumulated Depreciation accounts are shown as

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions