Ex. 232
THE COFFEE POT
Worksheet
For the Year Ended December 31, 2014
Statement of
Income Statement Financial Position
Accounts Debit Credit Debit Credit
Cash 10,000
Accounts Receivable 7,000
Supplies 4,000
Prepaid Insurance 6,000
Equipment 219,000
Accumulated Depreciation—Equipment 29,000
Accounts Payable 19,000
Note Payable 60,000
Salaries and Wages Payable 13,000
Share Capital-Ordinary 50,000
Retained Earnings 62,000
Dividends 9,000
Service Revenue 123,000
Advertising Expense 21,000
Depreciation Expense 12,000
Insurance Expense 3,000
Rent Expense 17,000
Salaries and Wages Expense 42,000
Supplies Expense 6,000
Totals101,000 123,000 255,000 233,000
Net Income 22,000 22,000
123,000 123,000 255,000 255,000
Instructions
(a)Calculate the retained earnings balance that would appear on a Statement of financial position at December 31, 2014.
(b)Prepare a classified statement of financial position for The Coffee Pot at December 31, 2014 assuming the note payable is a long-term liability.
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