Posted by Precious on .
*I don't know where to begin, please HELP*
Use the following adjusted trial balance of Webb Trucking Company to prepare a classified balance
sheet as of December 31, 2005.
Account Title Debit Credit
Cash . . . . $ 7,000
AR . . . . . 16,500
Office Supply 2,000
Trucks . . . 170,000
Accum. depreciation—Trucks $ 35,000
Land .. . . . 75,000
Accounts payable.......... . . 11,000
Interest payable . . . . . . 3,000
Long-term notes payable .. . . 52,000
K.Webb, Capital . . . . . . . 161,000
K.Webb, Wthdrw 19,000
Trucking fees earned ...... . 128,000
Dep. Exp.-Truck 22,500
Salaries . . . 60,000
Office supply exp7,000
Rpr exp—Trucks 11,000
Totals . . . $390,000 $390,000
Check- Total assets, $235,500
K.Webb, Capital, $169,500
Okay, first off, you have to know the different between a regular balance sheet, and a classified balance sheet.
A classified balance sheet separates current and noncurrent items.
Anything that's PPE (Property, plant, and equipment) is considered a long term asset
Anything that is long time, like a notes payable well obviously considered a long term liability. Accounts receivable is considered a CURRENT
Okay, now to make this classified balance sheet, first set up everything liek you would a normal balance sheet, but listen current assets first
This is what it should look like. I can't draw a chart, but I'll tell you what categories the adjusted trials go under
-Accum. Depreciation goes here
-All the payables should go down here except long term-notes payable
Long term liability
-long term-notes payable
I do not know where the expenses go, but if I would have to guess, it would be under current liabilty
I hope this helps you somehow!
Thank you so much, it's more than what I had at first.