Question

Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2017.Cash $ 5,900 Accounts receivable 27,500 Office supplies 7,590 Trucks 196,000 Accumulated depreciation—Trucks $ 40,376 Land 48,000 Accounts payable 9,900 Interest payable 7,000 Long-term notes payable 63,000 Common stock 15,000 Retained earnings 172,347 Dividends 29,000 Trucking fees earned 126,000 Depreciation expense—Trucks 26,043 Salaries expense 64,722 Office supplies expense 17,000 Repairs expense—Trucks 11,868 Totals $433,623 $ 433,623

Answer 1

Answer:

.............................................. Wilson Trucking Company ......................................

................................................ Classified Balance Sheet ......................................

....................................................... December 31, 2017.........................................

Assets

Current assets  

Cash .................................................... $5,900  

Account receivable ............................ $27,500  

Office supplies..................................... $7,590

Total current assets ............................................. $40,990

Non current assets  

Land ......................................................................... $48,000

Truck ..................................................... $196,000  

Less: Accumlated depreciation - Truck  $(40,376) $155,624

Total Non current assets ......................................... $203,624

Total Assets ............................................................... $244,614

Liabilities

Current Liabilities  

Account payable................................. $9,900  

Interest payable ................................. $7,000  

Total current liabilities............................................... $16,900

Long term liabilities  

Long term notes payable.......................................... $63,000

Total liabilities............................................................. $79,900

Stockholder's equity

Common Stock ................................... $15,000  

Retained earnings............................... $149,714  

Total Stockholder's equity......................................... $164,714

Total liabilities and stockholder's equity.................. $244,614

Retained Earnings

= Opening retained earnings + Net Income - Dividends

Net Income

= Revenue - Expenses

= 126,000 (Trucking fees earned ) - 26,043 - 64,722 - 17,000 - 11,868

= $6,367

Retained earnings

= 172,347 + 6,367 - 29,000

= $149,714