Respuesta :
Answer:
JOSEPH COOPER CO.
1. Income Statement
December 31, 2020
Service Revenue                 $12,130
Salaries & Wages Expense  7,380
Rent Expense            2,218
Depreciation Expense       187
Interest Expense           125     9,910
Net income                     $2,220
2. Statement of Retained Earnings
December 31, 2020
Retained Earnings, January 1, 2020 Â Â Â Â $11,850
Net income                          2,220
Dividends                           (3,540)
Retained Earnings, December 31, 2020 $10,530
3. Classified Balance Sheet
December 31, 2020
Assets
Current Assets:
Cash                   $20,012
Accounts Receivable        7,460
Prepaid Rent              2,820  $30,292
Long-term assets:
Equipment               18,590
Accumulated Depreciation  (5,435)  $13,155
Total assets                     $43,447
Liabilities + Equity
Current liabilities:
Accounts Payable         $6,012
Interest Payable             125    $6,137
Long-term liabilities:
Notes Payable                    6,240
Total liabilities                   $12,377
Equity:
Common Stock        $20,540
Retained Earnings       10,530  $31,070
Total liabilities + Equity          $43,447
Explanation:
a) Data and Calculations:
JOSEPH COOPER CO.
ADJUSTED TRIAL BALANCE DECEMBER 31, 2020
                        Debit   Credit
Cash                   $20,012
Accounts Receivable        7,460
Prepaid Rent              2,820
Equipment               18,590
Accumulated Depreciation-Equipment $5,435
Notes Payable                      6,240
Accounts Payable                   6,012
Common Stock                   20,540
Retained Earnings                  11,850
Dividends                3,540
Service Revenue                  12,130
Salaries & Wages Expense  7,380
Rent Expense            2,218
Depreciation Expense       187
Interest Expense           125
Interest Payable           125
Totals               $62,332   $62,332
