Question

requirements 1. Prepare the balance sheet for Winnford Towing Service as of June 30, 2018 2. What does the balance sheet report? Requirement 1. Prepare the balance sheet for Winniford Towing Service as of June 30, 2018. (If a box is not used in the table leave the box empty, do not select a label or enter a zero.) Assets Liabilities Stockholders' Equity

Answer 1

Requirement 1:

Winniford Towing Service
Balance Sheet
As of June 30,2018
Assets		Liabilities
Cash	$2,500	Accounts payable	$10,000
Accounts receivable	$5,000	Notes payable	$6,500
Office supplies	$900	Total liabilities	$16,500
Equipment	$19,900	Stockholders' Equity
		Common stock	$1,000
		Retained earnings, June 30,2018	$10,800
		Total Stockholders' Equity	$11,800
Total Assets	$28,300	Total liabilities and Stockholders' equity	$28,300

Requirement 2:

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time. An accounting report is a fiscal summary that reports an organization's benefits, liabilities and investors' value at a particular point in time, and and provides a basis for computing rates of return and evaluating its capital structure.