Use the following adjusted trial balance of Webb Trucking Company to prepare the
(1) income statement
(2) statement of owner’s equity, for the year ended December 31, 2011. The K. Webb, Capital, account balance is $161,000 at December 31, 2010.
|
Account Title |
Debit |
Credit |
|
Cash |
$7,000 |
|
|
Accounts receivable |
16,500 |
|
|
Office supplies |
2,000 |
|
|
Trucks |
170,000 |
|
|
Accumulated depreciation — Trucks |
|
$35,000 |
|
Land |
||
|
Accounts payable |
|
11,000 |
|
Interest payable |
|
3,000 |
|
Long term notes payable |
|
52,000 |
|
K. Webb, Capital |
|
161,000 |
|
K. Webb, Withdrawals |
19,000 |
|
|
Trucking fees earned |
|
128,000 |
|
Depreciation expense — Trucks |
22,500 |
|
|
Salaries expense |
60,000 |
|
|
Office supplies expense |
7,000 |
|
|
Repairs expense — Trucks |
11,000 |
|
|
Totals |
$390,000 |
$390,000 |
Prepare Webb Trucking Company’s classified balance sheet as of December 31, 2011.