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The Copeland Company was founded on January 1, 2017; since then, the company has been fairly successful; however, in an effort to save some money,
The Copeland Company was founded on January 1, 2017; since then, the company has been fairly successful; however, in an effort to save some money, the president has been keeping track of the financial records rather than hiring a professional accountant. Although some data is missing, a comparative report of year-end account balances appears below; all numbers are as of December 31st unless noted otherwise. Rent expense Selling and admin. expenses Dividends Retained earnings, Dec. 31 Notes payable Accounts receivable Property and equipment Accounts payable Common stock Revenues Payroll expense Retained earnings, Jan. 1 Cash 2019 13,100 ? 3,200 287,800 20,000 2,800 337,230 ? 40,000 183,000 93,500 221,900 18,600 2018 12,800 6,400 4,800 221,900 16,000 ? 273,400 10,600 40,000 164,000 82,300 ? 13,500 C. Required: a. Prepare an income statement, statement of retained earnings and a balance sheet for each year and determine the missing values. b. Assess the company's comparative results for the two-year period from the perspective of a bank and then from the perspective of an investor (i.e. did things get better or worse from those perspectives and why). If you were a bank would you lend the company more money? If you were an investor would you invest more money in the company? Briefly explain your decisions. In 2020, the company had the following transactions: 1. Borrowed $3,000 from a bank 2. Sold $180,000 of services to customers 3. Paid $3,200 for advertising 4. Paid $92,000 in employee payroll 5. Made a payment on a bank loan for $2,500 6. Purchased $3,400 of equipment 7. Paid $14,000 in rent 8. Received $1,500 from customers on account 9. Paid $800 owed to suppliers 10. Paid $1,200 in dividends to owners Prepare a tabular analysis for 2020, record the transactions and prepare statement of cash flows, income statement, statement of retained earnings and balance for the company for that year
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