Question

1. Presented below is the adjusted trial balance for Cooper Company on December 31, 2019.

      

COOPER COMPANY

Adjusted Trial Balance

December 31, 2019

                                                                    

                                                                      Dr.                 Cr.                       

Cash                                                         $ 1,500                                                  

Accounts Receivable                                   4,300                                                  

Prepaid Rent                                                2,100                                                  

Supplies                                                          400                                                  

Automobile equipment                              18,500                                                  

Accumulated depreciation—

     Automobile equipment                                               $ 1,300                                    

Accounts Payable                                                                2,700                                    

Unearned Revenue                                                              3,660

Notes Payable                                                                    10,000                          

Common Stock                                                                    5,000

Retained Earnings                                                                2,200

Dividends                                                     1,200                                                  

Service Revenue                                                                  8,800                                    

Salaries Expense                                          2,160                                                  

Utilities Expense                                          1,400                                                  

Rent Expense                                                  500                                                  

Supplies Expense                                            600                                                  

Depreciation Expense—         

     Automobile Equipment                              650                                                  

Interest Expense                                             350                                                  

     Totals                                                  $33,660           $33,660                          

a) Using this information, prepare for the month ending December 31: (2 points)

         1.   an income statement.

         2.   a retained earnings statement.

         3.   a balance sheet.

b) Using the above information, prepare December 31 closing entries for Cooper Company. Use

       the Income Summary T account to assist in your analysis.

(3 points)

Answer 1

8,800 Cooper Company Income Statement For the month ending December 31, 2019 Revenues Service Revenue Expenses Salaries Expense Utilities Expense Rent Expense Supplies Expense Depreciation Expense- Automobile equipment Interest Expense Total Expenses Net Income (Loss) 2,160 1,400 500 600 650 350 5,660 3,140 Statement of Retained Earnings For the month ending December 31, 2019 Retained Earnings, December 1, 2019 Net Income (Loss) 2,200 3,140 5,340 (1,200) 4,140 Dividends Retained Earnings, December 31, 2019

Cooper Company Balance Sheet As of December 31, 2019 Assets Current Assets Cash Accounts Receivable Prepaid Rent Supplies Total Current Assets 1,500 4,300 2,100 400 8,300 Fixed Assets Automobile equipment Accumulated Depreciation-Automobile equipment Net Fixed Assets Total Assets 18,500 (1,300) 17,200 25,500 Liabilities & Stockholders Equity Liabilities Accounts Payable Unearned Revenue Notes Payable Total Liabilities 2,700 3,660 10,000 16,360 5,000 Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 4,140 9,140 25,500

Credit Calculation Cooper Company Journal entries Date Account 31-Dec Service Revenue Clos. (1) Income Summary To close revenue Debit $ 8,800 $ 8,800 $ 5,660 31-Dec Income Summary Clos. (2) Salaries Expense Utilities Expense Rent Expense Supplies Expense Depreciation Expense- Automobile equipment Interest Expense To close expenses $ $ $ $ $ 2,160 1,400 500 600 650 350 $ 3,140 =8,800-5,660 31-Dec Income Summary Clos. (3) Retained Earnings To close income summary $ 3,140 $ 1,200 31-Dec Retained Earnings Clos. (4) Dividends To close dividends $ 1,200

Credit Date Credit Date Credit Cooper Company T Accounts Date Debit Date Income Summary Clos. (2) $ 5,660 Clos. (1) Clos. (3) $ 3,140 Debit Date Retained Earnings Adj Bal $ 1,200 Clos. (3) Debit Date Dividends $ 1,200 Clos. (4) $ 8,800 Adj Bal Clos. (4) $ $ 2,200 3,140 $ 1,200 $ - $ 4,140 Bal Adj Bal Service revenue Adj Bal 8,800 Bal Salaries Expense $ 2,160 Clos. (2) $ 8,800 Adj Bal Adj Bal Utilities Expense $ 1,400 Clos. (2) Clos. (1) $ $ 2,160 $ 1,400 $ - Bal Bal Rent Expense 500 Clos. (2) $ . Supplies Expense $ 600 Clos. (2) Bal $ . Depreciation Expense- Automobile equip Adj Bal $ 650 Clos. (2) $ 650 Adj Bal $ Adj Bal $ 500 $ 600 Bal s Bal $ - Bal $ - Adj Bal Interest Expense $ 350 Clos. (2) $ 350 Bal $ -