Prepare Financial Statements From Adjusted Trial Balance

Question

Prepare Financial Statements From Adjusted Trial Balance Worksheet Prepare Financial Statements from Adjusted Trial Balance Worksheet. The 2012 year-end adjusted balances taken from the general ledger of Cooperstown Services, Inc. are listed below in general ledger order. Cooperstown 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 $5,500 Additional paid-in capital – Common Retained earnings $15,600 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.

Dr. Jack HW Helper · Accepted Answer

The preparation of financial statements from an adjusted trial balance worksheet is crucial for summarizing the financial performance and position of a company. In this case, we will prepare three key financial statements for Cooperstown Services, Inc. based on the provided adjusted trial balance. The three financial statements include the Income Statement, Statement of Retained Earnings, and Classified Balance Sheet. Income Statement The Income Statement provides a summary of revenues and expenses over a specified period, resulting in the net income or loss for that period. For Cooperstown Services, Inc., we focus primarily on service revenues and the related expenses, excluding any cost of goods sold as it is a service company. Cooperstown Services, Inc. Income Statement For the Year Ended December 31, 2012 Revenues $475,000 Expenses: 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 Expenses $417,900 Net Income $57,100 Statement of Retained Earnings The Statement of Retained Earnings reflects the changes in retained earnings over the reporting period, including net income and dividends paid to shareholders. Cooperstown Services, Inc. Statement of Retained Earnings For the Year Ended December 31, 2012 Beginning Retained Earnings $15,600 Add: Net Income $57,100 Less: Dividends $25,400 Ending Retained Earnings $47,300 Classified Balance Sheet The Classified Balance Sheet provides a snapshot of the company's financial position at a specific point in time, showing assets, liabilities, and equity in a categorized format. Cooperstown Services, Inc. Classified Balance Sheet As of December 31, 2012 Assets Current Assets: Cash: $12,950 Accounts Receivable: $28,150 Supplies: $8,400 Prepaid Insurance: $9,500 Total Current Assets: $58,000 Non-Current Assets: Land: $115,000 Buildings: $360,000 Equipment: $260,000 Less: Accumulated Depreciation: ($239,900) Total N

Beginning Retained Earnings	$15,600
Add: Net Income	$57,100
Less: Dividends	$25,400
Ending Retained Earnings	$47,300

Prepare Financial Statements From Adjusted Trial Balance ✓ Solved

Prepare Financial Statements From Adjusted Trial Balance Worksheet

Paper For Above Instructions

Income Statement

Statement of Retained Earnings

Classified Balance Sheet

Assets

Liabilities

Equity

Conclusion

References

Revenues	$475,000
Expenses:
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 Expenses	$417,900
Net Income	$57,100