Exercise 3-7 Preparing financial statements LO P3

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 depreciationTrucks				$	36,000
Land		85,000
Accounts payable					12,000
Interest payable					4,000
Long-term notes payable					53,000
Common stock					20,000
Retained earnings					155,000
Dividends		20,000
Trucking fees earned					130,000
Depreciation expenseTrucks		23,500
Salaries expense		61,000
Office supplies expense		8,000
Repairs expenseTrucks		12,000
Totals	$	410,000		$	410,000

The Retained Earnings account balance is $155,000 at December 31, 2016.

(1) Prepare the income statement for the year ended December 31, 2017. (2) Prepare the statement of retained earnings for the year ended December 31, 2017.