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Introduction

1. Copies Express incorporated on 20 November, 2009,in operation 2 January, 2010.

2. Utilizing the record of cash receipts and

disbursements and other information relative tooperations prepare financial statements for the 1st 

 year of operations.

3. Specifically, prepare an income statement for 2010and a balance sheet as of 31 December, 2010.

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Journal Analysis

(1) Cash 176,450

Sales 176,450(2) Accounts Receivable 64,750

Sales 64,750

Cash 64,750

 Accounts Receivable 64,750(3) Wages and Salaries (expense) 85,750

Cash 85,750

(4) Heat, Light, and Power (expense) 15,000

Cash 15,000

(5) Supplies Inventory 52,600

Cash 52,600

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(6) Selling and Administration (expense) 28,375

Cash 28,375

(7) Interest Expense 2,880

Cash 2,880(8) Bank Loan 12,000

Cash 12,000

(9) Accounts Payable 10,400

Cash 10,400(10) Supplies Inventory 9,875

 Account Payable 9,875

(11) Depreciation Expense 15,000

 Accumulated Depreciation 15,000

Journal Analysis

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(12) Accounts Receivable 11,000

Sales 11,000

(13) Cost of Supplies Used 60,250

Supplies Inventory 60,250(14) Tax Expense 11,593

Taxes Payable 11,593

(15) Income Summary 33,352

Retained Earnings 33,352

Journal Analysis

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Income Statement

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Balance Sheet

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QUESTION’S ??