Clint Cooper started a consulting business, Coops Consulting Company in December 2007. He found out that you have been taking an accounting course and has asked you for assistance in preparing the financial information for his banker who has asked for financial statements. The banker has experience with loans to new startup consulting companies and is highly interested in this new venture.
Dec. 1 Clint contributed $2000 of his own money to start the business.
Dec. 2 A business loan was approved by the bank for $4000 which was deposited into the business account on the same day. The loan bears interest at 6% annually payable at the first of each month. The loan principal is due in 2 years.
Dec. 3 Clint was able to find suitable office space available immediately and the company paid 6 months' rent in advance for $3000.
Dec. 6 The company paid $450 cash for supplies.
Dec. 7 Clint hired UR Snazzy, a printing business, which prepared advertising brochures for the company and was paid $500 cash.
Dec. 8 Clint completed consulting services for a new client and received $9000 cash.
Dec.10 Clint purchased a new computer for the business for $3,600 on account. The account will become due on March 1st and the company expects to pay it at that time. The computer is expected to last 3 years at which point it will have no value.
Dec. 12 Clint hired someone to do some typing and paid them $3500 in cash.
Dec. 28 Clint hired a secretary who began organizing the client contacts and files. The salary will be $400 paid weekly.
Dec. 29 The secretary sent invoices to customers for $3200 for consulting work completed.
Dec. 30 Clint took $650 from the business to pay this credit card balance from holiday shopping for his family.
You have been able to obtain the following additional information
1.The company has decided on a December 31 year end.
2.Clint completed some consulting work on Dec. 30 but the fee of $3000 has not been listed above as he thought it was not important information.
3.At December 31st the secretary had worked for 2 days but will not be paid until January 4th 2008 when she will receive 6 days pay (she started on a Friday).
4.A customer work to be provided in January 2008. Clint immediately deposited the cheque.
5.You checked the supplies and determine that $225 remain on hand at Dec. 31st .
Required:
Submit the following for the company's first fiscal period:
1. Recording of all necessary journal entries. A Super T on which you have posted all transaction in order to prepare financial statements.
2. An Adjusted Trial Balance.
3. In proper form, an Income Statement, Statement of Owner's Equity and Balance Sheet for the company.