Question

The following adjusted year-end trial balance at December 31 of Wilson Trucking Company.

Account Title	Debit			Credit
Cash	$	9,000
Accounts receivable		16,500
Office supplies		2,000
Trucks		189,000
Accumulated depreciation—Trucks				$	38,934
Land		75,000
Accounts payable					13,000
Interest payable					3,000
Long-term notes payable					52,000
Common stock					35,880
Retained earnings					137,500
Dividends		19,000
Trucking fees earned					135,500
Depreciation expense—Trucks		25,112
Salaries expense		63,549
Office supplies expense		5,000
Repairs expense—Trucks		11,653
Totals	$	415,814		$	415,814

  
The Retained Earnings account balance was $137,500 at December 31 of the prior year.
  
(1) Prepare the income statement for the year ended December 31.
(2) Prepare the statement of retained earnings for the year ended December 31.

Part two, new info:

Account Title	Debit			Credit
Cash	$	6,900
Accounts receivable		10,500
Office supplies		6,353
Trucks		174,000
Accumulated depreciation—Trucks				$	35,844
Land		42,000
Accounts payable					10,900
Interest payable					17,000
Long-term notes payable					69,000
Common stock					-18,769
Retained earnings					135,000
Dividends		38,000
Trucking fees earned					127,000
Depreciation expense—Trucks		23,119
Salaries expense		54,170
Office supplies expense		11,000
Repairs expense—Trucks		9,933
Totals	$	375,975		$	375,975

  
Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31. (they want assets, liability, and equity)

Answer 1

Wilson Trucking Company 135500 Part 1 - Income Statement Trucking fees earned Less:- Expenses Depreciation expense-Trucks Salaries expense Office supplies expense Repairs expense-Trucks Total expenses Net Income 25112 63549 5000 11653 105314 30,186 Part 2 - Statement of Retained earnings Opening Balance Add:- net income Less:- Dividends 1,37,500 30,186 19000 1,48,686 Part 1 and 2 have been solved using the first adjusted trial balance.

Wilson Trucking Company 127000 WN 1 - Income Statement Trucking fees earned Less:- Expenses Depreciation expense-Trucks Salaries expense Office supplies expense Repairs expense-Trucks Total expenses Net Income 23119 54170 11000 9933 98222 28,778 WN 2 - Statement of Retained earnings Opening Balance Add:- net income (WN 1) Less:- Dividends 1,35,000 28,778 38000 1,25,778

Answer - Balance Sheet 6,900 10,500 6,353 Assets Current assets:- Cash Accounts Receivable Supplies Total current assets PPE:- Trucks Acc. Dep. - Trucks Land Total Assets 23,753 174000 -35844 138156 42000 180156 2,03,909 10900 17000 27900 Liabilities and owner's Equity Current Liabilities A/P Interest payable Long term liabilities Note payable Shareholder's Equity Common stock Retained earnings (WN 2) Total Stockholder's Equity Total Liabilities and owner's Equity 69000 -18769 1,25,778 1,07,009 2,03,909