In: Accounting
Account Title |
Debit |
Credit |
||||
Cash |
$ |
6,800 |
||||
Accounts receivable |
26,000 |
|||||
Office supplies |
7,205 |
|||||
Trucks |
151,000 |
|||||
Accumulated depreciation—Trucks |
$ |
31,106 |
||||
Land |
47,000 |
|||||
Accounts payable |
10,800 |
|||||
Interest payable |
12,000 |
|||||
Long-term notes payable |
38,000 |
|||||
Common stock |
17,000 |
|||||
Retained earnings |
149,867 |
|||||
Dividends |
45,000 |
|||||
Trucking fees earned |
128,000 |
|||||
Depreciation expense—Trucks |
20,063 |
|||||
Salaries expense |
61,439 |
|||||
Office supplies expense |
11,000 |
|||||
Repairs expense—Trucks |
11,266 |
|||||
Totals |
$ |
386,773 |
$ |
386,773 |
||
Use the above adjusted trial balance to prepare Wilson Trucking
Company’s classified balance sheet as of December 31, 2017.
|
Answer:-
Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2017:-
Current assets:- | |||
Cash and cash equivalents | $6,800 | ||
Accounts receivable | $26,000 | ||
Office supplies | $7,205 | ||
Total current assets |
= 6,800 + 26,000 + 7,205 = $40,005 |
||
Fixed assets | |||
Trucks | $151,000 | ||
Accumulated depreciation—Trucks | $31,106 | ||
Land | $47,000 | ||
Total fixed assets |
= 151,000 + 47,000 - 31,106 = $166,894 |
||
Total Assets |
= 166,894 + 40,005 = $206,899 |
||
Liabilities: | |||
Current liabilities | |||
Accounts payable | $10,800 | ||
Interest payable | $12,000 | ||
Total current liabilities |
= 10,800 + 12,000 = $22,800 |
||
Long term liabilities | |||
Long term note payable | $38,000 | ||
Total long - term liabilities | $38,000 | ||
Total liabilities |
= 22,800 + 38,000 = $60,800 |
||
Equity : | |||
Owner's equity capital | $17,000 | ||
Retained earnings | $129,099 | ||
Total owner's equity |
= 129,099 + 17,000 = $146,099 |
||
Total equity = Total liability+ owner's equity |
= 146,099 + 60,800 = $206,899 |
Working notes:-
Profit earned | ||
Trunk fees earned | $128,000 | |
Deduct : Expenses | ||
Depreciation | $20,063 | |
Salaries expense | $61,439 | |
Office supplies expense | $11,000 | |
Repairs - trucks | $11,266 | |
Total expenses |
= 20,063 + 61,439 + 11,000 + 11,266 = $103,768 |
|
Profit earned |
$128,000 - 103,768 = $24,232 |
Retained earnings | $149,867 |
Plus : Profit | $24,232 |
Deduct : Dividends paid | $45,000 |
Net retained earnings |
= 149,867 - (24,232 + 45,000) = 149,867 - 20,768 = $129,099 |