The adjusted trial balance of Joseph Cooper Co. as of December 31. 2020, contains the following. 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 and Wages Expense 7.380
Rent Expense 2.218
Depreciation Expense 187
Interest Expensc 125
Interest Payable 125
$62.332 $62.332
Required:
1. Prepare an income statement
2. Prepare a statement of retained earnings.
3. Prepare a classified balance sheet.

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         $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

explanation:

the circle graph below puts someone with a 595 at fair. that means you can buy on credit, but you might pay a little more because of where you have to go to get the loan.