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 depreciationTrucks . . . . . . . . $ 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 expenseTrucks . . . . . . . . . . . 22,500
Salaries expense . . . . . . . . . . . . . . . . . . . . . 60,000
Office supplies expense . . . . . . . . . . . . . . . . 7,000
Repairs expenseTrucks . . . . . . . . . . . . . . . 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 Companys (1) income statement, and (2) statement of owners equity. The K. Webb, Capital account balance is $161,000 at December 31, 2004.