The Copeland Company was founded on January 1, 2017; since then, the company has been fairly...

 

 

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The Copeland Company was founded on January 1, 2017; since then, the company has been fairly successful; however, in an effort to save some money, the president has been keeping track of the financial records rather than hiring a professional accountant. Although some data is missing, a comparative report of year-end account balances appears below; all numbers are as of December 31st unless noted otherwise. 2019 2018 Rent expense 13,100 12,800 6,400 4,800 221,900 16,000 Selling and admin. expenses Dividends 3,200 287,800 20,000 2,800 337,230 Retained earnings, Dec. 31 Notes payable Accounts receivable Property and equipment Accounts payable 273,400 10,600 40,000 164,000 82,300 Common stock Revenues Payroll expense Retained earnings, Jan. 1 Cash 40,000 183,000 93,500 221,900 18,600 13,500 Required: a. Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine the missing values. b. Assess the company's comparative results for the two-year period from the perspective of a bank and then from the perspective of an investor (i.e. did things get better or worse from those perspectives and why). If you were a bank would you lend the company more money? If you were an investor would you invest more money in the company? Briefly explain your decisions. In 2020, the company had the following transactions: С. Borrowed $3,000 from a bank Sold $180,000 of services to customers Paid $3,200 for advertising Paid $92,000 in employee payroll Made a payment on a bank loan for $2,500 Purchased $3,400 of equipment Paid $14,000 in rent Received $1,500 from customers on account Paid $800 owed to suppliers Paid $1,200 in dividends to owners 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Prepare a tabular analysis for 2020, record the transactions and prepare statement of cash flows, income statement, statement of retained earnings and balance for the company for that year. The Copeland Company was founded on January 1, 2017; since then, the company has been fairly successful; however, in an effort to save some money, the president has been keeping track of the financial records rather than hiring a professional accountant. Although some data is missing, a comparative report of year-end account balances appears below; all numbers are as of December 31st unless noted otherwise. 2019 2018 Rent expense 13,100 12,800 6,400 4,800 221,900 16,000 Selling and admin. expenses Dividends 3,200 287,800 20,000 2,800 337,230 Retained earnings, Dec. 31 Notes payable Accounts receivable Property and equipment Accounts payable 273,400 10,600 40,000 164,000 82,300 Common stock Revenues Payroll expense Retained earnings, Jan. 1 Cash 40,000 183,000 93,500 221,900 18,600 13,500 Required: a. Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine the missing values. b. Assess the company's comparative results for the two-year period from the perspective of a bank and then from the perspective of an investor (i.e. did things get better or worse from those perspectives and why). If you were a bank would you lend the company more money? If you were an investor would you invest more money in the company? Briefly explain your decisions. In 2020, the company had the following transactions: С. Borrowed $3,000 from a bank Sold $180,000 of services to customers Paid $3,200 for advertising Paid $92,000 in employee payroll Made a payment on a bank loan for $2,500 Purchased $3,400 of equipment Paid $14,000 in rent Received $1,500 from customers on account Paid $800 owed to suppliers Paid $1,200 in dividends to owners 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Prepare a tabular analysis for 2020, record the transactions and prepare statement of cash flows, income statement, statement of retained earnings and balance for the company for that year.

Answer rating: 100% (QA)

Capeland Company Income Stati ment for the year ended 314 see 2013 Amount 4 Total re 16... View the full answer