Question

Exercise 3-11 The adjusted trial balance of Thomas Cooper Co. as of December 31, 2020, contains the following. Credit THOMAS COOPER CO. ADJUSTED TRIAL BALANCE DECEMBER 31, 2020 Debit Cash $20,067 Accounts Receivable 7,515 Prepaid Rent 2,875 Equipment 18,645 Accumulated Depreciation-Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends 3,595 Service Revenue Salaries and Wages Expense 7,435 Rent Expense 2,214 Depreciation Expense 191 Interest Expense 129 Interest Payable $62,666 $5,490 6,295 6,067 20,595 11,905 12,185 129 $62,666

Answer 1

THOMAS COOPER CO.
Income Statement
For The Year Ended December 31, 2020
	$	$
Revenues:
Service Revenue	12,185.00
Total Revenues		12,185.00
Expenses:
Salaries and wages expense	7,435.00
Rent expense	2,214.00
Depreciation expense	191.00
Interest expenses	129.00
Total expenses		9,969.00
Net income		2,216.00

THOMAS COOPER CO.
Retained Earnings Statement
For The Year Ended December 31, 2020
	$
Beginning Retained earnings	11,905.00
Add: Net income	2,216.00
	14,121.00
Less: Dividends	(3,595.00)
Ending Retained earnings	10,526.00

THOMAS COOPER CO.
BALANCE SHEET
AS OF DECEMBER 31, 2020
	$	$
Assets
Current Assets
Cash	20,067.00
Accounts receivable	7,515.00
Prepaid rent	2,875.00
Total current assets		30,457.00
Property, plant and equipment
Equipment	18,645.00
Accumulated depreciation	(5,490.00)
Net property, plant, and equipment		13,155.00
Total assets		43,612.00
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	6,067.00
Interest Payable	129.00
Total current liabilities		6,196.00
Long-term liabilities
Notes payable		6,295.00
Total liabilities		12,491.00
Stockholders’ equity
Common stock	20,595.00
Retained earnings	10,526.00
Total stockholders’ equity		31,121.00
Total liabilities and stockholders’ equity		43,612.00