Cooley Company Reports the Following Accounts and Balances at December

question 150

Essay

Cooley Company reports the following accounts and balances at December 31,2015:
$$\begin{array} { l l } \text { Accounts Payable } & \$ 22,800 \\\text { Accounts Receivable } & 18,800 \\\text { Cash } & 24,400 \\\text { Land } & 82,400 \\\text { Machine } & 129,200 \\\text { Merchandise Inventory } & 63,600 \\\text { Long-term Note Payable } & 79,200 \\\text { Short-teran Note Payable } & 14,400 \\\text { Paid-in Capital } & 200,000 \\\text { Retained Earnings } & ? \\\text { Sales Revenue } & 122,000 \\\text { Cost of Goods Sold } & 80,000 \\\text { Operating Expenses } & 40,000\end{array}$$
Required:
Prepare a balance sheet at December 31,2015.Also,prepare an income statement for the year ended December 31,2015.Ignore depreciation expense and interest expense.

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Definitions:

Sound Of A Bell

An auditory signal typically resulting from the physical ringing of a bell, which can produce a clear, resonant tone.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented alongside an unconditioned stimulus that elicits a natural response.

Extinction

In behavioral psychology, the diminishing of a conditioned response when the reinforcement or association is removed.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.