Final answer:
A classified balance sheet requires a listing of assets, liabilities, and shareholders' equity, classified as either current or long-term. In the case of Singleton Bank, a classified balance sheet would likely show assets including reserve funds and loans, with liabilities such as deposits. For the self-check question, the accounting profit is the difference between sales revenue and total expenses.
Step-by-step explanation:
Understanding the Classified Balance Sheet
To prepare a classified balance sheet for Wilson Trucking Company as of December 31, we need to determine the company's assets, liabilities, and shareholders' equity at that date. Since we have information about Singleton Bank's balance sheet, which may be similar in structure to what is required for Wilson Trucking Company, it's essential to understand that a balance sheet represents a snapshot of a company's financial position at a specific point in time.
In Singleton Bank's case, the balance sheet alteration indicates that its assets now include $1 million in reserves and a $9 million loan to Hank's Auto Supply. The bank's liabilities include $10 million in deposits. When creating Wilson Trucking Company's balance sheet, each category (assets, liabilities, equity) would be classified and listed based on liquidity and permanence.
As for the SELF-CHECK QUESTION about a firm's accounting profit, if the firm had sales revenue of $1 million and incurred expenses totaling $950,000 ($600,000 on labor, $150,000 on capital, $200,000 on materials), the firm's accounting profit would be the difference between the sales revenue and the expenses, which is $50,000.