Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2017.

Exercise 3-9 Preparing a classified balance sheet LO C3

Account Title	Debit			Credit
Cash	$	6,500
Accounts receivable		11,500
Office supplies		6,298
Trucks		195,000
Accumulated depreciation—Trucks				$	40,170
Land		45,000
Accounts payable					10,500
Interest payable					16,000
Long-term notes payable					32,000
Common stock					18,000
Retained earnings					141,086
Dividends		15,000
Trucking fees earned					128,000
Depreciation expense—Trucks		25,910
Salaries expense		53,701
Office supplies expense		17,000
Repairs expense—Trucks		9,847
Totals	$	385,756		$	385,756

Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2017.

 

Explanation

Retained earnings is computed as:
                       
Beginning balance     $     141,086          
Plus: Net income ($128,000 – $25,910 – $53,701 – $17,000 – $9,847)           21,542          
Less: Dividends           (15,000     )    
Ending balance     $     147,628