q1q2q3q4q52. S't\'3.rd: 10outof 10.00 The follov.;ng adjusted trial balance contains the accounts and balances of Cruz Company as of December 31, 2013, the end of its fiscal year. No. Account Title Debit Credit 101 Cash $ 18.000 126 Supplies 10, 100 128 Prepaid insurance 2,000 167 Equipment 23,000 168 Accumulated depreciation- Equipment $ 6,500 301 T. Cruz, Capital 42,720 302 T. Cruz, Withdrawals 6,000 404 Services revenue 43,200 612 Depreciation expense-Equipment 2,000 622 Salaries expense 25,186 637 Insurance expense 1,814 640 Rent expense 2,894 652 Supplies expense 1,426 Totals $92,420 $92,420 1. Prepare the December 31, 2013, closing enlries for Cruz Company. Assume the account number for Income Summary is 901. Date General Journal Debit Dec.31 Services revenue ./ 43.200./ Income summary ./ Dec.31 Income summary 33,320./ Depreciation expens~quipment Salaries expense Insurance expense Rent expense Supplies expense Dec.31 Income summary ./ 9,880./ T. Cruz, Capital ./ Dec.31 T. Cruz, Capital ./ 6,000./ T. Cruz, Wrthdrawals ./ 2. Prepare the December 31, 2013, post~losing trial balance for Cruz Company. Cash Supplies Prepaid insurance CRUZ COMPANY Post-Closing Trial Balance Decenlber31,2013 II Debit II Credit ./ $ 18.000./ ./ 10, 100./ ./ 2.000./ Equipment ./ 23,000./ Accumulated depreciation-Equipment ./ $ 6,500./ T. Cruz. Capital Totals -./ 46.600./ --~~~~~r--~~~~_, 1$ 53,100 $ 53,100 I Credit 43,200./ 2,000./1 25.186./ 1,814./ 2,894./ 1,426./ 9,880./ 6,000./8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 2/32.Award: 1 out of 1.00 pointExercise 4-11 Preparing the financial statements LO C2The following is the adjusted trial balance of Wilson Trucking Company. Account Title Debit Credit Cash $ 8,000 Accounts receivable 17,500 Office supplies 3,000 Trucks 172,000 Accumulated depreciation—Trucks $ 36,000 Land 85,000 Accounts payable 12,000 Interest payable 4,000 Long-term notes payable 53,000 K. Wilson, Capital 175,000 K. Wilson, Withdrawals 20,000 Trucking fees earned 130,000 Depreciation expense—Trucks 23,500 Salaries expense 61,000 Office supplies expense 8,000 Repairs expense—Trucks 12,000 Totals $ 410,000 $ 410,000 The K. Wilson, Capital account balance is $175,000 at December 31, 2014. (1). Prepare the income statement for the year ended December 31, 2015. WILSON TRUCKING COMPANYIncome StatementFor Year Ended December 31, 2015RevenuesTrucking fees earned$ 130,000ExpensesDepreciation expense—Trucks$ 23,500Office supplies expense  8,000 Repairs expense—Trucks12,000Salaries expense61,000Total expenses 104,500Net income$ 25,5008/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 3/3(2). Prepare the statement of owner’s equity, for the year ended December 31, 2015. WILSON TRUCKING COMPANYStatement of Owner’s EquityFor Year Ended December 31, 2015K. Wilson, Capital, December 31, 2014 $ 175,000Add: Net income25,500200,500Less: Withdrawals20,000K. Wilson, Capital, December 31, 2015$ 180,500ReferencesWorksheet Exercise 4-11Preparing thefinancial statementsLO C2Learning Objective: 04-C2 Identify steps inthe accounting cycle.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 2/43.Award: 1 out of 1.00 pointExercise 4-12 Preparing a classified balance sheet LO C3 Account Title Debit Credit Cash $ 8,000 Accounts receivable 17,500 Office supplies 3,000 Trucks 172,000 Accumulated depreciation—Trucks $ 36,000 Land 85,000 Accounts payable 12,000 Interest payable 4,000 Long-term notes payable 53,000 K. Wilson, Capital 175,000 K. Wilson, Withdrawals 20,000 Trucking fees earned 130,000 Depreciation expense—Trucks 23,500 Salaries expense 61,000 Office supplies expense 8,000 Repairs expense—Trucks 12,000 Totals $ 410,000 $ 410,000 Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as ofDecember 31, 2015.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 3/4WILSON TRUCKING COMPANYBalance SheetDecember 31, 2015AssetsCurrent assetsCash  $ 8,000 Accounts receivable17,500Office supplies3,000Total current assets 28,500Plant assetsTrucks$ 172,000Accumulated depreciation—Trucks36,000136,000Land85,000Total plant assets 221,000Total assets$ 249,500LiabilitiesCurrent liabilitiesAccounts payable$ 12,000Interest payable4,000Total current liabilities 16,000Long-term liabilitiesLong-term notes payable53,000Total liabilities 69,000EquityK. Wilson, Capital180,500Total liabilities and equity$ 249,500References8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 2/24.Award: 1 out of 1.00 pointExercise 4-13 Computing the current ratio LO A1Use the information in the following adjusted trial balance for the Wilson Trucking Company. Account Title Debit Credit Cash $ 8,000 Accounts receivable 17,500 Office supplies 3,000 Trucks 172,000 Accumulated depreciation—Trucks $ 36,000 Land 85,000 Accounts payable 12,000 Interest payable 4,000 Long-term notes payable 53,000 K. Wilson, Capital 175,000 K. Wilson, Withdrawals 20,000 Trucking fees earned 130,000 Depreciation expense—Trucks 23,500 Salaries expense 61,000 Office supplies expense 8,000 Repairs expense—Trucks 12,000 Totals $ 410,000 $ 410,000 1. Calculate the current ratio. (Assume that the industry average for the current ratio is 1.5.) Current RatioChoose Numerator: / Choose Denominator: = Current RatioCurrent assets/ Current liabilities= Current ratio$ 28,500/ $ 16,000= 1.782. Compare Wilson's current ratio with the industry average. Wilson's current ratio is above the industry average. ReferencesWorksheet Exercise 4-13Computing thecurrent ratio LO A1Learning Objective: 04-A1 Compute thecurrent ratio and describe