Question

Account Title Debit Credit
Cash $ 7,800
Accounts receivable 15,500
Office supplies 6,160
Trucks 200,000
Accumulated depreciation�Trucks $41,200
Land 41,000
Accounts payable 11,800
Interest payable 2,000
Long-term notes payable 59,000
Common stock 35,000
Retained earnings 128,194
Dividends 22,000
Trucking fees earned 124,000
Depreciation expense�Trucks 26,574
Salaries expense 52,528
Office supplies expense 20,000
Repairs expense�Trucks 9,632
Totals $401,194 $401,194



Use the above adjusted trial balance to prepare Wilson Trucking Company�s classified balance sheet as of December 31, 2013.

Answer 1

Answer:

Explanation:

In the classified balance sheet, we summarize the asset and liabilities into various types

Like assets are divided into fixed assets, current assets, and intangible assets.

Likewise, liabilities are also divided into current liabilities, long term liabilities

In every balance sheet, the accounting equation is used that means

Total assets = Total liabilities + Shareholder equity

Before preparing we have to compute the net income and the ending retained earning balance which is shown below:

Net income = Trucking fees earned - truck Depreciation expense - Salaries expense - Office supplies expense - trucks Repairs expense

= $124,000 - $26,574 - $52,528 - $20,000 - $9,632

= $15,266

And, the ending retained earning balance = Beginning balance of retained earnings + net income - dividend paid

= $128,194 + $15,266 - $22,000

= $121,460

The preparation of the classified balance sheet for Wilson Trucking company on December 31, 2013 is presented in the spreadsheet. Kindly find the attachment below: