These are T accounts Collins Consignment Sales Company

These are T accounts Collins Consignment Sales Company

Prepare three financials statements

The accounts at December 31, 2014.'

One year ago, Ralph Collins founded Collins Consignment Sales Company and the business has prospered. Collins

Cash Accounts Receivable Prepaid Rent Office Supplies

Bal. 5,800 Bal. 12,300 Bal. 2,800 Bal. 2,600

Equipment Accumulated Dep. Equip. Accounts Payable

Bal. 52,000 18,500 Bal.

Salaries Payable Unearned Revenue Collins Capital , Collins Withdrawals

4,100 Bal. 40,000 Bal, Bal. 50,000

Service Revenue Salaries Expense Dep. Expense-equipment

80,700 Bal. Bal. 17,000

Advertising Expense Utilities Expense Supplies Expense

Bal 800

Collins indicates that at year-end, customers owe his $1,000 accrued service revenue, which he expects to collect early next year.Owe him $1,000 accrued service revenue, which he expects to collect early next year.

These revenues have not been recorded. During the year, he collected $4,100 service revenue in advance from customers, but revenue in advance from customers, but the business has earned only $800 of that amount. During the year, he has incurred $2,400 of advertising expense, but he has not yet paid for it. Also, he has used up $2,100 of the office supplies. Collins determines that depreciation on equipment was $7,000 for the year. At December 31, 2014, he owes his employee $1,200 accrued salary.

Collins expresses concern that withdrawals during the year might have exceeded the business's net income. To get a loan to expand the business. Collins must sow the bank that the business's owner's equity has grown from its original $40,000 balance. Has it?

You and Collins agree that you will meet again in one week.

Requirements

1. Prepare the financial statement that helps address the first issue concerning Collins.

2. Can Collins expect to get the loan? Give your reason(s)

Discuss what you learned about the Company upon preparing the financial statements and whether Collins can anticipate securing the loan from the bank and your reasons for your opinion and potential suggestions for moving forward.

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