Below is the post-closing trial balance for Chaucer Cleaners, a sole proprietorship operating a laundry business. Use these numbers as the beginning balances for the year.

Chaucer Cleaners

Post-Closing Trial Balance

December 31, 2014

Dr. Cr.

Cash 15,000

Accounts Receivable 10,000

Supplies Inventory 12,000

Equipment 46,000

Accumulated Depreciation 20,000

Accounts Payable 11,000

Unearned Revenue 4,000

Long-Term Bank Note Payable 25,000

Ferd Berful, Capital ______ 23,000 83,000 83,000

Below you will find the adjusted trial balance for the year ending December 31, 2015, for Chaucer Cleaners. Using these data, please prepare an income statement, and a statement of cash flows, all in good form, including headings, on the pages provided. In preparing the statement of cash flows, use the indirect method only.

Chaucer Cleaners

Adjusted Trial Balance

December 31, 2015

Dr. Cr.

Cash 6,000

Accounts Receivable 14,000

Supplies Inventory 40,000

Prepaid Expenses 2,000

Equipment 46,000

Accumulated Depreciation 22,000

Accounts Payable 9,000

Unearned Revenues 5,000

Long-Term Bank Note Payable 25,000

Ferd Berful, Capital 23,000

Ferd Berful, Withdrawals 4,000

Sales 61,000

Operating Expenses 24,000

Selling and Admin. Expenses 5,000

Interest Expense 2,000

Depreciation Expense 2,000 ______

145,000 145,000