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
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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