The Adjusted Trial Balance of Hanson Hawk Company at September

question 123

Essay

The adjusted trial balance of Hanson Hawk Company at September 30, 2022 includes the following accounts: Owner's Capital $27,700; Owner's Drawings $9,750; Service Revenue $46,800; Insurance Expense $1,950; Salaries and Wages Expense $18,000; Rent Expense $3,000; Supplies Expense $650; and Depreciation Expense $1,100. Prepare an owner's equity statement for the year.

---

Definitions:

Financial Statements

Formal records of the financial activities and condition of a business, organization, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Intangible Asset

An asset that lacks physical substance but is still identifiable and provides economic value to the business, such as patents or trademarks.

Amortization

The process of spreading the cost of intangible assets over their useful life, or gradually paying off debt through a series of fixed payments.

Research Costs

Expenses associated with activities undertaken to discover new knowledge, develop new products or processes, without assurance of commercial success.