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.