Question

Exercise 3-11 The adjusted trial balance of Teal Cooper Co. as of December 31, 2017, contains the following TEAL COOPER cO. ADJUSTED TRIAL BALANCE DECEMBER 31, 2017 Credit Debit $19,627 7,075 2,435 18,205 Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Rent Expense Depreciation Expense Interest Expense Interest Payable $5,050 5,855 5,627 20,155 11,465 3,155 11,745 6,995 2,246 159 97 97 $59,994 $59,994

Answer 1

Teal cooper co.

Income statement

For the year ended December 31, 2017

revenues
Service revenue		11745
Expenses
Salaries and wage expense	6995
Rent expense	2246
Depreciation expense	159
Interest expense	97
Total expenses		9497
Net income		2248

Teal cooper co.

Statement of retained earnings

For the year ended December 31, 2017

Retained earnings, January 1		11465
Add: net income		2248
		13713
Less: Dividends		3155
Retained earnings, December 31		10558

Teal cooper co.

Balance sheet

December 31, 2017

Assets

Current assets
Cash	19627
Accounts receivable	7075
Prepaid rent	2435
Total current assets		29137
Property, plant and equipment
equipment	18205
Accumulated depreciation- equipment	(5050)	13155
Total assets		42292

Liabilities and stockholders’ equity

Current liabilities
Accounts payable		5627
Interest payable		97
Notes payable		5855
Total current liabilities		11579
stockholders’ equity
Common stock	20155
Retained earnings	10558
Total stockholders’ equity		30713
Total Liabilities and stockholders’ equity		42292