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Chapter 1: Q33E_2 (page 41)

Preparing the balance sheet

Requirements

1. Prepare the balance sheet for Wilson Towing Service as of June 30, 2018.

2. What does the balance sheet report?

Short Answer

Expert verified

Wilson Towing Service

Balance Sheet

December 31, 2018
Assets
Liabilities

Cash

$1,400

Accounts Payable

$8,000

Office Supplies

1,000

Notes Payable

6,800

Accounts Receivable

9,000

Total Liabilities

14,800

Equipment

25,850

Stockholders鈥� Equity

Common Stock

11,000

Retained Earnings

11,450

Total Stockholders鈥� Equity

22,450

Total Assets

$37,250

Total Liabilities and Stockholders鈥� Equity

$37,250

Step by step solution

01

Explanation of Balance Sheet

The Balance sheet indicates the balances of assets, liabilities, and owners鈥� equity on a particular date or at the end of an accounting period.

02

Details of balance sheet

In the balance sheet, total assets are $37,250, total liabilities are $14,800, and total stockholders鈥� equity is $22,450.

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