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          

The following calendar year-end information is taken from the December 31, 2015, adjusted trial balance and other records of Leone Company.

The following calendar year-end information is taken from the December 31, 2015, adjusted trial balance and other records of Leone Company.

                                         
  Advertising expense     $     33,600             Direct labor     $     684,100    
  Depreciation expense—Office equipment           9,400             Income taxes expense           272,300    
  Depreciation expense—Selling equipment           10,000             Indirect labor           55,500    
  Depreciation expense—Factory equipment           33,200             Miscellaneous production costs           11,000    
  Factory supervision           132,700             Office salaries expense           67,000    
  Factory supplies used           8,200             Raw materials purchases           963,000    
  Factory utilities           39,000             Rent expense—Office space           28,000    
  Inventories                         Rent expense—Selling space           29,200    
     Raw materials, December 31, 2014           163,600             Rent expense—Factory building           80,200    
     Raw materials, December 31, 2015           179,000             Maintenance expense—Factory equipment           35,700    
     Work in process, December 31, 2014           19,400             Sales           4,566,700    
     Work in process, December 31, 2015           23,700             Sales salaries expense           391,600    
     Finished goods, December 31, 2014           167,300                             
     Finished goods, December 31, 2015           136,600    

Required:
1.     Prepare the company’s 2015 schedule of cost of goods manufactured.                        

2.     Prepare the company’s 2015 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.