The adjusted trial balance of George Cooper Co. as of December 31, 2020, contains the following. GEORGE COOPER CO. ADJUSTED TRIAL BALANCE DECEMBER 31, 2020
Debit Credit
Cash $20,397
Accounts Receivable 7,845
Prepaid Rent 3,205
Equipment 18,975
Accumulated Depreciation-Equipment $5,820
Notes Payable 6,625
Accounts Payable 6,397
Common Stock 20,925
Retained Earnings 12,235
Dividends 3,925
Service Revenue 12,515
Salaries and Wages Expense 7,765
Rent Expense 2,190
Depreciation Expense 215
Interest Expense 153
Interest Payable 153
$64,670 $64,670

Required:
a. Prepare an income statement.
b. Prepare a statement of retained earnings.
c. Prepare a classified balance sheet.

George Cooper Co.

a. Income Statement for the year ended December 31, 2020:

Service Revenue                                   $12,515

Salaries and Wages Expense 7,765

Rent Expense                          2,190

Depreciation Expense               215

Interest Expense                        153      10,323

Net income                                            $2,192

b. Statement of Retained Earnings for the year ended December 31, 2020

Retained Earnings                              $12,235

Net income                                              2,192

Dividends                                               3,925

Retained Earnings                              $10,502

c. Classified Balance Sheet as of December 31, 2020

Assets:

Current Assets:

Cash                                       $20,397

Accounts Receivable                 7,845

Prepaid Rent                             3,205       $31,447

Long-term assets:

Equipment                             $18,975

Accumulated Depreciation      5,820      $13,155

Total assets                                            $44,602

Liabilities and Equity:

Current liabilities:

Notes Payable                                            6,625

Accounts Payable                                      6,397

Interest Payable                                            153

Total liabilities                                         $13,175

Equity:

Common Stock                      20,925

Retained Earnings                  10,502   $31,427

Total liabilities and equity                   $44,602

Explanation:

a) Data and Calculations:

GEORGE COOPER CO.

ADJUSTED TRIAL BALANCE DECEMBER 31, 2020

                                                 Debit       Credit

Cash                                       $20,397

Accounts Receivable                 7,845

Prepaid Rent                             3,205

Equipment                               18,975

Accumulated Depreciation-Equipment  $5,820

Notes Payable                                            6,625

Accounts Payable                                      6,397

Interest Payable                                            153

Common Stock                                       20,925

Retained Earnings                                   12,235

Dividends                                 3,925

Service Revenue                                     12,515

Salaries and Wages Expense 7,765

Rent Expense                          2,190

Depreciation Expense               215

Interest Expense                        153

Totals                                 $64,670   $64,670

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