Majestic Trucking Inc. (Majestic) is a small trucking company that carries freight between centres in central Canada and the northeastern United States. The Mozart family of Cobourg owns Majestic, but professional managers manage it. One member of the Mozart family serves as the chair of the board of directors. No other family members are actively involved with Majestic. Majestic s balance sheet for December 31, 2016, the company s year-end, is shown below. Majestic uses its financial statements for tax purposes, to show to the holders of the long-term notes that the company issued to finance the purchase of some of its trucks, and to provide information to the shareholders. It is now January 2018. Majestic needs to prepare its financial statements for the year ended December 31, 2017. You have obtained the following information about the fiscal year just ended: i. Shipping revenue for the year was $1,065,225. Majestic gives credit to all its customers and there were no cash sales during the year. ii. Majestic purchased $275,000 worth of fuel during the year. All purchases were on credit. At the end of 2017, Majestic hadn t been billed for an additional $10,000 of fuel that it purchased. iii. Majestic incurred maintenance costs of $125,000 during 2017. At the end of 2017, Majestic owed mechanics $8,000. (The $8,000 owed is included in the $125,000.) iv. Majestic paid wages and bonuses of $475,000 to employees. At December 31, 2017, Majestic owed employees $27,50
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