Question

Preparing a classified balance sheet

Account Title Debit
Cash $ 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 58,000
Common stock 15,000
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 classified balance sheet as of December 31.

Answer 1

Wilson Trucking Company classified balance sheet as of December 31.

Assets

Non - Current Assets

Trucks 172,000

Accumulated depreciation Trucks (36,000) 136,000

Land 85,000

Total Non - Current Assets 221,000

Current Assets

Office supplies 3,000

Accounts receivable 17,000

Cash 8,000

Total Current Assets 28,500

Total Assets 249,500

Equity and Liabilities

Equity

Common stock 15,000

Retained earnings 155,000

Dividends (20,000)

Total Equity 110,000

Liabilities

Non - Current Liabilities

Long-term notes payable 58,000

Total Non - Current Liabilities 58,000

Current Liabilities

Accounts payable 12,000

Interest payable 4,000

Total Current Liabilities 16,000

Total Equity and Liabilities 249,500

Step-by-step explanation:

The following appear in the Balance Sheet.

1. Assets
2. Liabilities
3. Equity

When preparing the Balance Sheet remember the Accounting Equation : Assets = Equity + Liabilities.,