Question

Account TitleDebit CreditCash$8,000 Accounts receivable 17,500 Office supplies 3,000 Trucks 172,000 Accumulated depreciation—Trucks $36,000 Land 85,000 Accounts payable 12,000 Interest payable 4,000 Long-term notes payable 53,000 Common stock 20,000 Retained earnings 155,000 Dividends 20,000 Trucking fees earned 130,000 Depreciation expense—Trucks 23,500 Salaries expense 61,000 Office supplies expense 8,000 Repairs expense—Trucks 12,000 Totals$410,000 $410,000 Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2017.

Answer 1

2017 Balance Sheet

$8,000 Cash

$17,500 Accounts Receivable

$3,000 Office Supplies

$28,500 TOTAL CURRENT ASSETS

$ 172,000 Trucks

-$ 36,000 Accum Depreciation

$ 85,000 Land

$221,000 TOTAL NON CURRENT ASSETS

$249,500 TOTAL ASSETS

$12,000 Accounts Payable

$4,000 Interest Payable

$16,000 TOTAL CURRENT LIABILITIES

$53,000 Long Term Notes Payable

$53,000 TOTAL NON CURRENT LIABILITIES

$69,000 TOTAL LIABILITIES

$20,000 Common Stock

$160,500 Retained Earnings

$180,500 TOTAL EQUITY

$249,500 TOTAL EQUITY + LIABILITIES

Step-by-step explanation:

• To complete the balance it's necessary to have the Income Statement of the company and deduct of the Net Income the Dividends Paid and the balance add to the Retained Earnings.
• The total value of retained earnings it's: $160,500

Wilson Income Statement

$130,000 Sales

-$23,500 Depreciation

$106,500 MARGEN BRUTO

-$61,000 Salaries Expenses

-$8,000 Office Expenses

-$12,000 Repairs Expenses

$25,500 EBIT

Retained Earnings Report

Opening retained earnings $ 155,000

Add: Net Income $ 25,500

Subtotal $ 180,500

Less: Dividens -$ 20,000

Ending retained earnings $ 160,500

• The balance accounts are orginized as follows

Account of Current Assets , the criteria is to have a liquidity speed less of one year

Cash

Accounts Receivable

Office Supplies

Account of Non Current Assets , the criteria is to have a liquidity speed more than one year and are known as fixed assets

Trucks

Accum Depreciation

Land

Account of Current Liabilities , the criteria is to have a liquidity speed less of one year

Accounts Payable

Interest Payable

Account of Non Current Liabilities, the criteria is to have a liquidity speed more than one year and are known as long term financing

Long Term Notes Payable

Account of Total Equity

Common Stock

Retained Earnings