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Prepared by

Amit Kumar,
Roll x003-14

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 to
operations prepare financial statements for the
1st year of operations.
3. Specifically, prepare an income statement for
2010 and a balance sheet as of 31 December,
2010.

(1) Cash

176,450

Sales
(2) Accounts Receivable

176,450
64,750

Sales
Cash

64,750
64,750

Accounts Receivable
(3) Wages and Salaries (expense)

64,750
85,750

Cash
(4) Heat, Light, and Power (expense)

85,750
15,000

Cash
(5) Supplies Inventory
Cash

15,000
52,600
52,600

(6) Selling and Administration (expense)

28,375

Cash
(7) Interest Expense

28,375
2,880

Cash
(8) Bank Loan

2,880
12,000

Cash
(9) Accounts Payable

12,000
10,400

Cash
(10) Supplies Inventory

10,400
9,875

Account Payable
(11) Depreciation Expense
Accumulated Depreciation

9,875
15,000
15,000

(12) Accounts Receivable

11,000

Sales
(13) Cost of Supplies Used

11,000
60,250

Supplies Inventory
(14) Tax Expense

60,250
11,593

Taxes Payable
(15) Income Summary
Retained Earnings

11,593
33,352
33,352