Koopman Company began operations on January 1, 2012, and uses the FIFO inventory method for financial reporting and the average cost inventory method for income taxes. At the beginning of 2014, Koopman decided to switch to the average cost inventory method for financial reporting. It had previously reported the following financial statement information for 2013:

An analysis of the accounting records discloses the following cost of goods sold under the FIFO and average cost inventory methods:

There are no indirect effects of the change in inventory method. Revenues for 2014 total $130,000; operating expenses for 2014 total $30,000. Koopman is subject to a 30% income tax rate in all years; it pays the income taxes payable of a current year in the first quarter of the next year. Koopman had 10,000 shares of common stock outstanding during all years; it paid dividends of $1 per share in 2014. At the end of 2014, Koopman had cash of $10,000, inventory of $24,000, other assets of $70,800, accounts payable of $4,500, and income taxes payable of $6,000. It desires to show financial statements for the current year and previous year in its 2014 annual report.

Question

Prepare the comparative balance sheets.

Comparative Balance Sheets December 31	2014	2013 As adjusted
Asset
Cash	$ ?????	$ ?????
Inventory	$ ?????	$ ?????
Other Assets	$ ?????	$ ?????
Total Assets	$ ?????	$ 95,100
Liabilities and Shareholders Equity
Accounts payable	$ ?????	$ ?????
Income taxes payable	$ ?????	$ ?????
Common stock, no par	$ ?????	$ ?????
Retained earnings	$ ?????	$ ?????
Total liabilities and shareholders Equity	$ 104,800	$ ?????

Retained Earnings Statement Beginning retained eamings Income Statement 2013 Revenues Cost of goods sold Gross profit Operating expenses Income before income taxes Income tax expense Net income 2013 $100,000 S 40,000 $ 15,000 10,500 $15,000 10,500 25,500 (6,000) $19,500 (60,000) Ad: Net income Less: Dividends Ending retained eamings (25,000) Earnings per share $ 1.05 Balance Sheet (12/31/13) Cash Inventory Other assets $ 9,000 38,000 64,100 Accounts payable Income taxes payable Deferred tax liability Common stock, no par Retained earnings $ 3,000 1,800 4,800 82,000 19,500 $111,100 $111,100