Answer:
Wilson Trucking Company’s classified balance sheet as of December 31, 2017.
ASSETS
<u>Non - Current Assets</u>
Trucks 200,000
Accumulated depreciation—Trucks (36,256
) 163,744
Land 43,000
Total Non - Current Assets 206,744
<u>Current Assets</u>
Office supplies 6,160
Accounts receivable 15,500
Cash 7,800
Total Current Assets 29,460
Total Assets 236,204
EQUITY AND LIABILITIES
Equity
K. Wilson, Capital 171,525
K. Wilson, Withdrawals (45,000)
Net Income 22,292
Total Equity 148,817
Liabilities
<u>Non - Current Liabilities</u>
Long-term notes payable 40,000
Total Non - Current Liabilities 40,000
<u>Current Liabilities</u>
Accounts payable 10,100
Interest payable 20,000
Total Current Liabilities 30,100
Total Equity and Liabilities 218,917
Explanation:
The Net Income for the year needs to be determined. This is included under the Equity section of the Balance Sheet.
<u>Calculation of Net Income/(Loss) for the year</u>
$ $
Trucking fees earned 121,000
Less Expenses :
Depreciation expense —Trucks 23,385
Salaries expense 56,046
Office supplies expense 9,000
Repairs expense— Trucks 10,277 (98,708)
Net Income / (loss) 22,292
