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lavoy2marvin
Mar 28, 2007, 01:57 PM
Use the following adjusted trial balance of Webb Trucking Company to prepare a classified balance sheet as of December 31, 2005.
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
I have been working on this for three days now. I have to prepare a classified balance sheet. Will somebody please help?
CaptainForest
Mar 28, 2007, 02:45 PM
Sure we will help you.
First, show us what you have attempted over the last 3 days, then we will help you.
lavoy2marvin
Mar 28, 2007, 04:13 PM
Assets
Current Assets
Cash... 7,000
Account receivable... 16,500
Merchandise inventory... 9,000
Plant Assets
Equipment... 170,000
Accumulated Depreciation... 35,000
Land... 75,000
Depreciation Expense... 22,500
Current Liabilities
Account payable... 11,000
Wages... 60,000
This is what I have so far the Assets suppose to total up to be $235,500 and K. Webb, Capital 169,500. I am not sure if this is right or not and I am confused.
CaptainForest
Mar 29, 2007, 12:35 AM
Balance sheet as of December 31, 2005
ASSETS
CURRENT ASSETS
Cash.. . $ 7,000
Accounts receivable.. . 16,500
Office supplies.. . 2,000
Total CA = 25,500
Fixed Assets
Trucks.. . 170,000
Accumulated depreciation—Trucks.. . $ 35,000
Land.. . 75,000
Total FA = 210,000
TOTAL ASETS = 235,500
Liabilities
Short Term Liabilities
Accounts payable.. . 11,000
Interest payable.. . 3,000
Total STL = 14,000
Long Term Liabilities
Long-term notes payable.. . 52,000
Total Liabilities = 66,000
Owner's Equity
K.Webb, Capital.. . 161,000
K.Webb, Withdrawals.. . 19,000
Total Owner's Equity = 142,000
Total Liabilities + Owner's Equity = 208,000
As you can see from the above, Assets (235,500) do not equal Total Liabilities + Owner's Equity (208,000), the difference is 27,5000
We need to add the net income to the capital account…
So we must calculate the net income.
INCOME STATEMENT
Trucking fees earned.. . 128,000
Less: Expenses
Depreciation expense—Trucks.. . 22,500
Salaries expense.. . 60,000
Office supplies expense.. . 7,000
Repairs expense—Trucks.. . 11,000
Net Income = 27,500
So Just add 27,500 to Capital account to make it 188,500, and there is your balance sheet.
lavoy2marvin
Mar 29, 2007, 11:38 AM
Thanks, I understand it now. You are very helpful.
CaptainForest
Mar 29, 2007, 01:40 PM
You're welcome
qbalmost39
Nov 15, 2007, 11:34 AM
Captain forest,
I want to Thank You also. I had everything in the proper place except fees earned and how to go about writing it out properly to show the correct information in the proper headings. I was just confussing myself even more. So Thank You again for everything.
qbalmost39
Nov 15, 2007, 11:35 AM
Another Thank You everyone for helping.
GRAVEYARDER2
Nov 16, 2007, 05:25 AM
Use the following adjusted trial balance of Webb Trucking Company to prepare a classified balance sheet as of December 31, 2005.
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
I have been working on this for three days now. I have to prepare a classified balance sheet. Will somebody please help?
Hey u must first do the journal account or u can just do the ledger account so that u can do it correct.then u must enter the total for each ledger.
SamSajasi
Feb 3, 2011, 02:51 PM
Hello,
I am having trouble with Accounting homework. I hope you can help me out with the correct answer.
The question is: "Materials & supplies" are classified under which category in the classified balanced sheet?
Current assets Current liabilities
Long-term investments Long-term liabilities
Property, plant, and equipment Common stock
Intangible assets Retained earnings
For the homework, we get 3/3 chances; however, I already used up 2 of my chances. I think I got the answer wrong by putting classifying it as a "current asset" then I can't remember which answer I put for the second time.
pready
Feb 3, 2011, 02:53 PM
Materials and Supplies is classified as a Current Asset on a Balance Sheet if you expect to use them within one year or one accounting cycle.