TS1538 My Dad gave my sister his iphone when he upgraded. How do i change his account to my sisters account???

So my sister just got an iphone from my Dad. She took it to her carrier I believe its Verizon. She now wants to make the phone her own. The phone still has my Dads account it and he wants the pics that are on it saved. The phone also has my sisters contacts and pics on it.
The question is how can i make the phone only have her account on it with only her pics and her contacts.
It looks like everything is jumbled together.
I think she operating the phone under my dads account.
I was going to save the entire phones data using itunes and icloud.
it looks like in order to that i would have to have itunes downloaded on her phone which it is under my dad and install icloud which i think would have to be done also undermy dads account.
i would then download itunes and i cloud on her laptop using my dads account and the sync the entire phone to both programs.
Then i could erase the entire phone and start over using my sisters apple id.
is this solution the easiest way to accomplish my task.
please help as i am her only tech support . i take care of all her devises and its the first time i have dealt with apple products.
thanks steve
ps she will be here with her phone at 2pm today. she has a very busy schedule so i am under the gun to get this done.
details   model.      MD277LL/A
Ser.                       C39GPTX7DTFC
firm.                      5.0.02
OS.                      7.0.4

settings->itunes & app stores->click on the unwanted appleID click logout
and login with the wanted appleID

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