Preparing Balance Sheet and Statements
1. Checkpoint: Preparing Balance Sheets and Statements
• Resource: Fundamental Accounting Principles, pp. 156 and 159
• Due Date: Day 4 [Individual] forum
• Complete Exercises 4-4 and 4-5 on p. 159. As follow below:
Exercise 4-4
Preparing a classified balance sheet
Use the following adjusted trial balance of Webb Trucking Company to prepare a classified balance sheet as of December 31, 2005.
Account Title Debit Credit
Cash.. . $ 7,000
Accounts receivable.. . 16,500
Office supplies.. . 2,000
Trucks.. . 170,000
Accumulated depreciation—Trucks.. . $ 35,000
Land.. . 75,000
Accounts payable.. . 11,000
Interest payable.. . 3,000
Long-term notes payable.. . 52,000
K.Webb, Capital.. . 161,000
K.Webb, Withdrawals.. . 19,000
Trucking fees earned.. . 128,000
Depreciation expense—Trucks.. . 22,500
Salaries expense.. . 60,000
Office supplies expense.. . 7,000
Repairs expense—Trucks.. . 11,000
Totals.. . $390,000 $390,000
* Check Total assets, $235,500;
K.Webb, Capital, $169,500
Exercise 4-5
Preparing the financial statements
Use the information in the adjusted trial balance reported in Exercise 4-4 to prepare Webb Trucking Company’s (1) income statement, and (2) statement of owner’s equity. The K. Webb, Capital account balance is $161,000 at December 31, 2004.
