Question

Frank's Trucking Co. Adjusted Trial Balance October 31, 2021 Dobit Credit $ 35,420 Cash. Supplies ($6,000 - $4,000).... 2,000 Equipment...... 140,000 $ 56,000 Accumulated depreciation equipment... Vehicles.. 110,000 61,875 Accumulated depreciation-vehicles................ Accounts payable.. 7,950 Salaries payable 2,550 60,000 275 75,750 36,000 200,525 Notes payable... Interest payable. H. Burke, capital ......... H. Burke, drawings ....- Service revenue Depreciation expense.... Repairs expense.... Insurance expense ........ Interest expense ($3,392 + $275).......... Rent expense..... Salaries expense ($45,000 + $2,550)...... Supplies expense ... 27,750 28,038 9,500 3,667 21,000 47,550 4.000 $464.925 $464.925 Instructions: Prepare a Classified Balance Sheet using $98,770 as the ending Owner's Capital Oct 31, 2021.

Answer 1

Requirement 1: Prepare the classified balance sheet as follows

FTC Inc
Balance Sheet
October 31, 2021
Assets	Amount	Amount
Current Assets:
Cash	$35,420
Supplies	$2,000
Total Current Assets		$37,420
Property, Plant and Equipment:
Equipment	$140,000
Deduct: Accumulated Depreciation - Equipment	($56,000)	$84,000
Vehicles	$110,000
Deduct: Accumulated Depreciation - Vehicles	($61,875)	$48,125
Total Assets		$169,545
Liabilities and Owners' Equity
Current Liabilities:
Accounts Payable	$7,950
Salary Payable	$2,550
Interest Payable	$275
Total Current Liabilities		$10,775
Non-Current Liabilities:
Notes Payable - Long-term		$60,000
Total liabilities		$70,775
Owners' Equity:
Capital		$98,770
Total liabilities and owners' equity		$169,545

Note: Assumed notes payable as long-term debt.

Requirement 2: Prepare income statement, statement of owners' equity and classified balance sheet as follows

JDS Inc
Income Statement
For the Year Ended July 31, 2021
Particulars	Amount	Amount
Revenues:
Service revenue		$13,700
Expenses:
Depreciation Expense	$417
Repairs Expense	$550
Insurance Expense	$233
Interest Expense	$92
Salaries Expense	$3,800
Supplies Expense	$1,400
Total Expenses		$6,492
Net income		$7,208
JDS Inc
Statement of Owners' Equity
For the Year Ended July 31, 2021
Particulars		Amount
Capital - Beginning Balance		$20,000
Add: Net income		$7,208
Deduct: Withdrawals		($2,600)
Capital - Ending Balance		$24,608
JDS Inc
Balance Sheet
July 31, 2021
Assets	Amount	Amount
Current Assets:
Cash	$9,350
Accounts Receivable	$10,400
Supplies	$700
Prepaid Insurance	$2,567
Total Current Assets		$23,017
Property, Plant and Equipment:
Vehicles	$25,000
Deduct: Accumulated Depreciation - Vehicles	($417)	$24,583
Total Assets		$47,600
Liabilities and Owners' Equity
Current Liabilities:
Accounts Payable	$2,100
Salary Payable	$800
Interest Payable	$92
Total Current Liabilities		$2,992
Non-Current Liabilities:
Notes Payable - Long-term		$20,000
Total liabilities		$22,992
Owners' Equity:
Capital		$24,608
Total liabilities and owners' equity		$47,600

  Note: Assumed notes payable as long-term debt.