How to reset my iPhone to factory settings?

My friend gave me his iPhone 5S and it still has all his info in it, but he can't remember his password! So now I want to reset it but I'm not sure how to get around it! Any suggestions?!

Added (1). We got this phone full price from someone who was selling it, so he used his SIM to make sure it was working. Now we both can't figure this out!

I believe this is how to hard reset an iPhone:

Hold power button for 20 seconds,
release power button, hold Home button for 20 seconds,
release home button, hold power button again for 20 seconds.

That should reset all and show the "connect to iTunes/ slide to set up phone symbols.

Hope this helps!

If it has ios7 on it and the iphone is locked with their email only the original owner with that email can unlock the iphone. To restore it do it through itunes. But like i said ios7 restore or not you still need the password for the email the iphone was originally associated with.

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