Use the above adjusted trial balance to prepare Wilson Trucking Company’s classi

Question

  
Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2017.

5. Account Title Debit Credit Cash $ 9,300 Accounts receivable 27,500 Office supplies 6,518 Trucks 191,000 Accumulated depreciation—Trucks $ 39,346 Land 50,000 Accounts payable 13,300 Interest payable 5,000 Long-term notes payable 42,000 Common stock 15,000 Retained earnings 146,818 Dividends 10,000 Trucking fees earned 130,000 Depreciation expense—Trucks 25,378 Salaries expense 55,577 Office supplies expense 6,000 Repairs expense—Trucks 10,191 Totals $ 391,464 $ 391,464

Explanation / Answer

Wilson Trucking co. Balancesheet As on December 31, 2017 Assets : Current assets Cash $       9,300 Accounts Receivables $     27,500 Office supplies $       6,518 Total Current assets $     43,318 Plant assets Trucks $ 1,91,000 Less: Accumulated Deprecialtion on Building $     39,346 $ 1,51,654 Land $     50,000 Total Plant assets $ 2,01,654 Total assets $ 2,44,972 Liabilities : Current Liabilities Accounts Payable $     13,300 Interest Payable $       5,000 Total Current Liabilities $     18,300 Non Current Liabilities Long term notes Payable $     42,000 Total Non Current Liabilities $     42,000 Total Liabilities $     60,300 Equity Common stock $     15,000 Retained Earnings $ 1,69,672 Total Equity $ 1,84,672 Total Equity and Liabilities $ 2,44,972 Working Notes: Computation of retained earnings Retained earnings statement For the year ended December 31, 2017 Opening balance January 01, 2017 $ 1,46,818 Add: Net Income $     32,854 Less: Dividend paid $     10,000 $     22,854 Closing balance December 31, 2017 $ 1,69,672 Computation of Net Income: Revenues Trucking fees earned $ 1,30,000 Less: Expenses Depreciation expense- Trucks $     25,378 Salaries expense $     55,577 Office supplies expense $       6,000 Repairs expense - Trucks $     10,191 Total Expense $     97,146 Net Income $     32,854

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