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Account Title Debit Credit Cash $ 6,800 Accounts receivable 26,000 Office suppli

ID: 2342186 • Letter: A

Question

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.

WILSON TRUCKING COMPANY

Balance Sheet

December 31, 2017

Assets

0

Liabilities

Equity

$0

$0

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

Explanation / Answer

Answer:-

Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2017:-

= 6,800 + 26,000 + 7,205

= $40,005

= 151,000 + 47,000 - 31,106

= $166,894

= 166,894 + 40,005

= $206,899

= 10,800 + 12,000

= $22,800

= 22,800 + 38,000

= $60,800

= 129,099 + 17,000

= $146,099

= 146,099 + 60,800

= $206,899

Working notes:-

= 20,063 + 61,439 + 11,000 + 11,266

= $103,768

$128,000 - 103,768

= $24,232

= 149,867 - (24,232 + 45,000)

= 149,867 - 20,768

= $129,099

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

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