Question

The account balances and select financial statements of Willard Towing Service at June 30, 2018, follow: 

Requirements

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

 2. What does the balance sheet report? 

Answer 1

Assets Accounts receivable Office supplies Willard Towing Service Balancesheet June 30, 2018 liabilities 2200 Accounts payable 7000 Notes payable 700 Total liabilities Shareholders equity 22050 Common stock Retained earnings Total stockholders Equity 31950 Total liabilities and Stockholders' equity 110001 7000 18000 Equipment 8000 5950 13950 31950 Total assets

Balance sheet report the total assets,Total liabilities and Stockholders equity of a company for a particular year. Hence Willard towing service Total assets value is $31,950, Total Liabilities value is $18,000 and Shareholders equity is $13,950. Finally Total assets and Total Liabilities and stockholders equity should be equal.