The adjusted trial balance of Gary Cooper Co. as of December 31, 2014, contains the following. GARY COOPER CO.
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $20,892
Accounts Receivable 8,340
Prepaid Rent 3,700
Equipment 19,470
Accumulated Depreciation-
Equipment $6,315
Notes Payable 7,120
Accounts Payable 6,892
Common Stock 21,420
Retained Earnings 12,730
Dividends 4,420
Service Revenue 13,010
Salaries and Wages Expense 8,260
Rent Expense 2,154
Depreciation Expense 251
Interest Expense 189
Interest Payable 189
$67,676 $67,676
Instructions:
(a) Prepare an income statement.
(b) Prepare a statement of retained earnings.
(c) Prepare a classified balance sheet.

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  

ParticularsAmount

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