Question

The adjusted trial balance of Gary Cooper Co. as of December 31, 2014, contains the following.

Answer 1

Answer and Explanation:

The presentation of each of the financial statement is presented below:

1.

GARY COOPER CO.  

Income Statement  

For the Year Ended December 31, 2020  

Particulars Amount

Revenues:    

Service revenue $13,010  

Total revenue (a)  $13,010  

Less: Expenses:    

Salaries and wages expense $8,260  

Rent expense $2,154  

Depreciation expense $251  

Interest expense  $189  

Total expenses (b)   $10,854  

Net Income (a - b)  $2,156  

2.

GARY COOPER CO.  

Retained Earnings Statement  

For the Year Ended December 31, 2020  

Particulars  Amount  

Beginning balance of Retained earnings $12,730  

Add: Net income  $2,156  

Less: Dividends     -$4,420  

Ending balance of Retained earnings $10,466  

3.

GARY COOPER CO.  

Balance Sheet  

For the Year Ended December 31, 2020  

Assets:    

Cash     $20,892  

Accounts receivables $8,340  

Prepaid rent $3,700  

Equipment 19470  

Less: Accumulated depreciation

on equipment ($6,315) $13,155  

Total Assets  $46,087  

Liabilities and Stockholder's Equity:    

Current Liabilities:    

Accounts payable $6,892  

Notes payable       $7,120  

Interest payable $189  

Total Current liabilities  $14,201  

Stockholder's equity:    

Common stock  $21,420  

Retained earnings $10,466  

Total Stockholder's Equity   $31,886  

Total Liabilities and Stockholder's Equity  $46,087