Question

The 2012 year-end adjusted balances taken from the general ledger of Cooperstown Services, Inc. are listed below in general ledger order.

Coopertown Suppliers, Inc.
	DR	CR
Cash	$12,950
Accounts receivable	28,150
Supplies	8,400
Prepaid insurance	9,500
Land	115,000
Buildings	360,000
Equipment	260,000
Accumulated depreciation		$239,900
Accounts payable		35,300
Salaries payable		7,300
Taxes payable Common stock		5,200 31,500
Additional paid-in capital - Common Retained earnings		15,400 427,600
Dividends	25,400
Service revenue		475,000
Salaries expense	335,600
Depreciation expense	25,100
Supplies expense	12,950
Insurance expense	8,200
Miscellaneous expense	30,850
Utilities expense	5,100
Total	$1,237,200	$1,237,200

Transfer these accounts and balances to a spreadsheet worksheet and prepare an income statement, a classified balance sheet, and a statement of retained earnings, all in good form using proper headings for each statement. Note that Cooperstown is a service company so there is no cost of goods sold in its chart of accounts. Also, assume that all the liabilities are current liabilities. Keep in mind that you should not report any accounts without balances in your statements.

Answer 1

Work Sheet Account Title Cash Accounts receivable Supplies Prepaid insurance Land Buildings Equipment Accumulated depreciation Accounts payable Salaries payable Taxes payable Common stock Additional paid-in capital - Common Retained earnings Dividends Debit Credit $12,950 28,150 8,400 9,500 115,000 360,000 260,000 $239,900 35,300 7,300 5,200 31,500 15,400 427,600 25,400

Service revenue Salaries expense Depreciation expense Supplies expense Insurance expense Miscellaneous expense Utilities expense Total 475,000 335,600 25,100 12,950 8,200 30,850 5,100 $1,237,200 $1,237,200

$ 475,000 Income Statemet for the year ending 2012 Income: $ Service revenue Less Operating expenses Salaries expense 335,600 Depreciation expense 25,100 Supplies expense 12,950 Insurance expense 8,200 Miscellaneous expense 30,850 Utilities expense 5,100 Less Total operating Expenses Net Income -417800 $57,200

$ $12,950 28,150 8,400 9,500 COOPERTOWN SUPPLIERS Inc. Clssified Balance sheet as at 2012 Current Assets Cash Account Receivable Supplies Prepaid Insurance Total Current Assets Non Current Assets Land Buildings Equipment 260,000 Accumulated Depreciation -239900 Total Non Current Assets Total Assets $59,000 115,000 360,000 20100 495,100 $554,100

35,300 7,300 5,200 47,800 Current Liabilities Accounts payable Salaries payable Taxes payable Total Current Liabilities Owners Equity Common stock Additional paid-in capital - Common Retained earnings Add Net Income Less Dividends Owners Equity Total Liabilities & Owners Equity 31,500 15,400 427,600 57,200 -25,400 459,400 506,300 554,100