Required Informetlon Use the following information for the Exercises below [The

Question

Required Informetlon Use the following information for the Exercises below [The following Information applies to the questions displayed below.] The following is the adjusted year-end trial balance at December 31, 2018, of Wilson Trucking Company Account Title Debit Credit $ 8,000 17, 500 3, 000 172, 000 Cash Accounts receivable Office supplies TruckS Accumulated depreciation-Trucks Land Accounts payable Interest payable 36, 000 85, 000 12, 000 4, 000 53, 000 20, 000 155, 000 Long term notes payable Common stock Retained earnings, December 31, 2017 Dividends Trucking fees earned Depreciation expense-Trucks Salaries expense Office supplies expense Repairs expense-Trucks Totals 20, 000 130, 000 23, 500 61, 000 8, 000 12,000 $410, 000 $410, 000 Exercise 3-8 Preparing financial statements LO P3 (1) Prepare the Income statement for the year ended December 31, 2018 (2) Prepare the statement of retalned earnings for the year ended December 31, 2018 (3) Prepare its balance sheet as of December 31, 2018

Explanation / Answer

INCOME STATEMENT Revenue: Trucking fees earned 130000 Total revenue 130000 Expenses: Depreciation expense-Trucks 23500 ` Salaries expense 61000 Office supplies expense 8000 Repairs expense-Trucks 12000 Total expenses 104500 Net income 25500 RETAINED EARNINGS Balance, December 31, 2017 155000 Add: Net income during the year 25500 180500 Less: Dividends 20000 Balance, December 31, 2018 160500 BALANCE SHEET ASSETS Current assets: Cash 8000 Accounts receivable 17500 Office supplies 3000 Total current assets 28500 Land 85000 Trucks 172000 Less: Accumulated 36000 136000 Total assets 249500 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 12000 Interest payable 4000 Total current liabilities 16000 Long term notes payable 53000 Total liabilities 69000 Stockholders' Equity: Common stock 20000 Retained earnings 160500 Total stockholders' equity 180500 Total liabilities and stockholders' equity 249500

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