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The 2012 year-end adjusted balances taken from the general ledger of Cooperstown

ID: 2486856 • Letter: T

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.

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

Explanation / Answer

Balance sheeet 2012 Assets Amount Amount Current Asset Cash 12950 Account receivable 28150 Supplies on Hand 8400 Prepaid insurance 9500 Total Current Asset 59000 Fixed cost Land 115000 Buildings 360000 Equipment 260000 Less :Accumulated Depreciation -239900 Total Fixed Asset 495100 Total Assets 554100 Liabilities Amount Amount Current Laibilities Account payable 35300 Salary Payable 7300 Taxes payable 5200 Total Liabilities 47800 Shareholder's equity Common Stock 31500 Additional Paid in capital-Common Stock 15400 Retained earnings 459400 Total Shareholder's equity 506300 Total Liabilities & Shareholder's Equity 554100 Statement of Retained earnings Particulars Amount Amount Opening Balance 427600 Less : Dividend -25400 Add : Net income Current year 57200 Closing Balance 459400 Income statement Particulars Amount Revenue Service Revenue 475000 Less : Expenses Salaries expense 335600 Depreciation expense 25100 Supplies expense 12950 Insurance expenses 8200 Miscellaneous expenses 30850 Utilities expenses 5100 Total expenses 417800 Net income transferred to Retained earnings 57200