Transactions for Pops Company for 2011 were as follows:

a. The owners started the business as a corporation by contributing $30,000 cash in exchange for common stock.

b. The company purchased office equipment for $8,000 cash and land for $15,000 cash.

c. The company earned a total of $22,000 of revenue of which $16,000 was collected in cash.

d. The company purchased $890 worth of supplies for cash.

e. The company paid $6,000 in cash for other operating expenses.

f. At the end of the year, the company owed employees $2,480 for work that the employees had done in 2011. The next payday, however, is not until January 4, 2012.

g. Only $175 worth of supplies was left at the end of the year.

The office equipment was purchased on January 1 and is expected to last for eight years (straight-line depreciation, no salvage value).

Requirements

1. Use an accounting equation worksheet to record the transactions that occurred during 2011.

2. Record any needed adjustments at year end.

3. Prepare the income statement, statement of changes in shareholders’ equity, and the statement of cash flows for the year ended December 31, 2011, and the balance sheet at December 31, 2011.