The adjusted trial balance for Lightning Courier as of December 31, 2005, follows:

Required 1. Use the information in the adjusted trial balance to prepare

(a) the income statement for the year Check (I) Total assets, $612,000 ended December 31, 2005,

(b) the statement of owner’s equity for the year ended December 31, 2005, and

(c) the balance sheet as of December 31, 2005.
2. Calculate the profit margin for year 2005.

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Cash Accounts receivable Interest receivable.. Notes receivable (due in 90 days) Office supplies Debit Credit $ 48,000 110,000 6,000 200,000 12,000 Trucks 124,000 Accumulated depreciation-Trucks $ 48,000 Equipment 260,000 Accumulated depreciation-Equipment 190,000 Land 90,000 Accounts payable 124,000 Interest payable 22,000 Salaries payable 30,000 Unearned delivery fees 110,000 Long-term notes payable 190,000 J. Hallam, Capital 115,000 J. Hallam, Withdrawals 40,000 Delivery fees earned 580,000 Interest earned 24,000 Depreciation expense-Trucks 24,000 Depreciation expense-Equipment 46,000 Salaries expense 64,000 Wages expense 290,000 Interest expense 25,000 Office supplies expense 33.000 Advertising expense 26,400 Repairs expense-Trucks 34,600 Totals $1,433,000 $1,433,000