[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?

[CaptainForest]

Sure we will help you.

First, show us what you have attempted over the last 3 days, then we will help you.

[lavoy2marvin]

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]

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]

Thanks, I understand it now. You are very helpful.

[CaptainForest]

You're welcome

[qbalmost39]

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]

Another Thank You everyone for helping.

[GRAVEYARDER2]

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]

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]

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.