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Ch4-3

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[The following information applies to the questions displayed below.) The following is the adjusted trial balance of Sierra Company, Credit Sierra Company Adjusted Trial Balance December 31 Account Title Debit Canh $ 19,000 Prepaid insurance 1,200 Notes receivable (due in 5 years) 5,400 Buildings 55,000 Accumulated depreciation-Buildings Accounts payable Notes payable (due in 3 years 1. Sierra, Capital L. Sierra, withdrawal 4,500 Consulting revenue Wagen expense 4,200 Depreciation expense-Huildingo 5,500 Insurance expense 2,200 Totale $ 97,000 $ 19,000 6,000 6,500 21,000 44,500 $ 97,000 QS 4-16 (Algo) Preparing an income statement & statement of owner's equity LO C1 (1) Prepare an Income statement for the year ended December 31. (2) Prepare a statement of owner's equity for the year ended December 31. The L. Sierra, Capital account balance was $21,000 on December 31 of the prior year, and there are no owner investments during the current year, Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year ended December 31. SIERRA COMPANY Income Statement For Year Ended December 31 Revenues: Consulting revenue $ 44,500 $ 44,500 Total revenues Expenses Wages expense Depreciation expense Buildings Insurance expense S SIS IS 4.200 5,500 2.200 Required information Required 1 Required 2 Prepare an income statement for the year ended December 31. SIERRA COMPANY Income Statement For Year Ended Deceber 31 Revenues: Consulting revenue $ 44,500 $ 44,500 Total revenues Expenses: Wages expense Depreciation expense-Buildings Insurance expense 4,200 5,500 2,200 Total expense Net Income 11,900 $ 32,600 Required information Required 1 Required 2 2 Prepare a statement of owner's equity for the year ended December 31. The L. Sierra, on December 31 of the prior year, and there are no owner investments during the curre SIERRA COMPANY Statement of Owner's Equity $ 21,000 L. Sierra, Capital, December 31 prior year Add: Investments by owner Add: Net income 32,600 53,600 (4,500) Less: Withdrawals by owner L. Sierra, Capital, December 31 current year $ 49,100

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