Introduction

1.

Copies Express incorporated on 20 November, 2009, in operation 2 January, 2010. Utilizing the record of cash receipts and disbursements and other information relative to operations prepare financial statements for the 1st year of operations. Specifically, prepare an income statement for 2010 and a balance sheet as of 31 December, 2010.

2.

3.

Journal Analysis
(1) Cash Sales (2) Accounts Receivable Sales 64,750 64,750 176,450 176,450

Cash Accounts Receivable

(3) Wages and Salaries (expense) Cash (4) Heat, Light, and Power (expense) Cash (5) Supplies Inventory Cash

64,750 64,750
85,750 85,750 15,000 15,000 52,600 52,600

Journal Analysis
(6) Selling and Administration (expense) Cash (7) Interest Expense Cash (8) Bank Loan Cash (9) Accounts Payable Cash (10) Supplies Inventory Account Payable (11) Depreciation Expense 15,000 9,875 9,875 10,400 10,400 12,000 12,000 2,880 2,880 28,375 28,375

Accumulated Depreciation

15,000

Journal Analysis
(12) Accounts Receivable Sales (13) Cost of Supplies Used Supplies Inventory (14) Tax Expense Taxes Payable (15) Income Summary Retained Earnings 33,352 33,352 11,593 11,593 60,250 60,250 11,000 11,000

Income Statement

Balance Sheet

QUESTIONS ??