Assignment: Income Statement
The 2012 year-end adjusted balances taken from the general ledger of Cooperstown Services, Inc. are listed below in general ledger order.
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Coopertown Suppliers, Inc.
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|
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DR
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CR
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Cash
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$12,950
|
|
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Accounts receivable
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28,150
|
|
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Supplies
|
8,400
|
|
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Prepaid insurance
|
9,500
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|
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Land
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115,000
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|
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Buildings
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360,000
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|
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Equipment
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260,000
|
|
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Accumulated depreciation
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$239,900
|
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Accounts payable
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35,300
|
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Salaries payable
|
|
7,300
|
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Taxes payable
|
|
5,200
|
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Common stock
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31,500
|
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Additional paid-in capital - Common
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15,400
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Retained earnings
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427,600
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Dividends
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25,400
|
|
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Service revenue
|
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475,000
|
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Salaries expense
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335,600
|
|
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Depreciation expense
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25,100
|
|
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Supplies expense
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12,950
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|
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Insurance expense
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8,200
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|
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Miscellaneous expense
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30,850
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|
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Utilities expense
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5,100
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|
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Total
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$1,237,200
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$1,237,200
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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.