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    lavoy2marvin's Avatar
    lavoy2marvin Posts: 5, Reputation: 1
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    #1

    Mar 28, 2007, 01:57 PM
    Balance sheet
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    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's Avatar
    lavoy2marvin Posts: 5, Reputation: 1
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    #3

    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #4

    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's Avatar
    lavoy2marvin Posts: 5, Reputation: 1
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    #5

    Mar 29, 2007, 11:38 AM
    Thanks, I understand it now. You are very helpful.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #6

    Mar 29, 2007, 01:40 PM
    You're welcome
    qbalmost39's Avatar
    qbalmost39 Posts: 4, Reputation: 1
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    #7

    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's Avatar
    qbalmost39 Posts: 4, Reputation: 1
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    #8

    Nov 15, 2007, 11:35 AM
    Another Thank You everyone for helping.
    GRAVEYARDER2's Avatar
    GRAVEYARDER2 Posts: 1, Reputation: 1
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    #9

    Nov 16, 2007, 05:25 AM
    Quote Originally Posted by lavoy2marvin
    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's Avatar
    SamSajasi Posts: 14, Reputation: 1
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    #10

    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's Avatar
    pready Posts: 3,197, Reputation: 207
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    #11

    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.

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