UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-Q  (Mark One)  X.QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended June 30, 2009  .TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE EXCHANGE ACT  For the transition period from ___________ to _____________  Town and Country Appraisal Service, Inc. (Exact name of small business issuer as specified in its charter)  Nevada000-5321426-1703958(State or other jurisdiction of incorporation or organization)(Commission file number)(IRS Employer Identification No.)  John S. Chidester
Town and Country Appraisal Service, Inc.
710 Westbridge Street
PO Box 1041
Blackfoot, ID 83221
(Address of principal executive offices)  208-785-2474(Issuer's telephone number)  Check whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X.No ..  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act (Check one):  Large Accelerated Filer .Accelerated Filer .Non-Accelerated Filer .Smaller Reporting Company X.  State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date: 10,000,000 shares of Common Stock, as of August 18, 2009.  Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934) (check one): Yes .No X.  Transitional Small Business Disclosure Format (check one): Yes No X.   TOWN AND COUNTRY APPRAISAL SERVICE, INC.  FORM 10-Q  June 30, 2009  INDEX   PART I-- FINANCIAL INFORMATIONPageItem 1Unaudited Financial Statements3Item 2Managements Discussion and Analysis of Financial Condition8Item 3Quantitative and Qualitative Disclosures About Market Risk10Item 4Control and Procedures10PART II-- OTHER INFORMATIONItem 1Legal Proceedings10Item 2Unregistered Sales of Equity Securities and Use of Proceeds10Item 3Defaults Upon Senior Securities10Item 4Submission of Matters to a Vote of Security Holders10Item 5Other Information10Item 6Exhibits and Reports on Form 8-K11   2   ITEM 1. Financial Information   TOWN AND COUNTRY APPRAISAL SERVICE, INC.Balance SheetsJune 30, 2009(unaudited)ASSETSJune 30,December 31,
20082009(Audited)Current AssetsCash$3,186$11,777Accounts Receivable, net-1,275Total Current Assets3,18613,052Property and Equipment, net2,9393,266Total Assets$6,125$16,318LIABILITIES AND STOCKHOLDERS' EQUITYCurrent LiabilitiesAccrued Expenses$25,368$13,698Unearned Income-18,495Total Current Liabilities25,36832,193Stockholders' EquityPreferred stock, $.001 par value; 1,000,000 shares authorized; none issued or outstandingCommon stock, $.001 par value; 74,000,000 shares authorized; 10,000,000 shares issued and outstanding10,00010,000Additional Paid-in Capital(9,340)(9,340)Accumulated Deficit(19,903)(16,535)Total Stockholders' Equity(19,243)(15,875)Total Liabilities and Stockholders' Equity$6,125$16,318The accompanying notes are an integral part of these statements   3    TOWN AND COUNTRY APPRAISAL SERVICE, INC.Statement of OperationsFor the Three Months and Six Months Ended June 30, 2009 and 2008(unaudited)Three Months EndedSix Months Ended(April 16, 2007)June 30,June 30,through2009200820092008June 30, 2009Revenues$27,585$27,335$74,110$57,910$75,385Operating expenses:Compensation and contractor fees20,10920,12655,32742,25556,307General and administrative10,8148,20922,15116,65522,151Total30,29328,33577,47858,91078,458Net (loss)$(3,338)$(1,000)$(3,368)$(1,000)$(3,073)Net (loss) per common share - basic and diluted$(0.00)$(0.00)$(0.00)$(0.00)$(0.00)Weighted average number of common shares outstanding - basic and diluted10,000,00010,000,00010,000,00010,000,00010,000,000The accompanying notes are an integral part of these statements   4    TOWN AND COUNTRY APPRAISAL SERVICE, INC.Statement of Stockholders' Equity(unaudited)From April 16, 2007 (inception) to June 30, 2009(Deficit)AccumulatedPriceduringTotalPerCommon StockPaid inSubscriptionsDevelopmentEquity/ShareSharesAmountCapitalReceivableStage(Deficit)Balance January 1, 20069,340,0009,340(9340)---Net income------Balance December 31, 20069,340,0009,340(9,340)---Shares Issued for cash0.001660,000660---660Net loss----(660)(660)Balance December 31, 200710,000,00010,000(9,340)-(660)-Net (Loss) March 31 ,2008------Balance March 31, 200810,000,00010,000(9,340)-(660)-Net (Loss) June 30,2008----(1,000)-Balance June 30, 200810,000,00010,000(9,340)-(1660)(1,000)Net (Loss) September 30 ,2008------Balance September 200810,000,00010,000(9,340)(1660)(1,000)Net (Loss) December 31, 2008----(14,875)-Balance December 31, 200810,000,00010,000(9,340)-(16,535)(15,875)Net (Loss) March 31, 2009------Balance March 31, 200910,000,00010,000(9,340)-(16,535)(15,875)Net (Loss) June 30, 2009----(3,367)-Balance June 30, 200910,000,00010,000(9,340)-(19,902)(19,242)The accompanying notes are an integral part of these statements   5     TOWN AND COUNTRY APPRAISAL SERVICE, INC.Statement of Cash FlowsFor the three Months and Six Months Ended June 30, 2009 and 2008(unaudited)Three Months EndedSix Months EndedJune 30,June 30,2009200820092008Operating ActivitiesNet (Loss)$(3,338)$(1000)$(3,368)$(1000)Adjustments to reconcile Net (Loss)Shares issued for organization and development costs----Depreciation163-327-Changes in Operating Assets and Liabilities3891000(6,825)1,000(Increase)/Decrease in Accounts Receivable--1,275-Increase/(Decrease) in Accounts Payable----Net Cash Provided by Operating Activities(2,786)-(8,592)-Investment ActivitiesPurchase of Equipment----Net Cash (Used) by Investment Activities----Financing ActivitiesLoanProceeds from sale of Common Stock----Net Cash Provided by Financing Activities----Net Increase in Cash----Cash, Beginning of Period5,972-11,777-Cash, End of Period$3,186$-$3,186$-Supplemental Information:Interest Paid$----Income Taxes Paid$----The accompanying notes are an integral part of these statements   6   TOWN AND COUNTRY APPRAISAL SERVICE, INC.  Notes to Unaudited Financial Statements  June 30, 2009 (Unaudited)  NOTE 1 BASIS OF PRESENTATION  The accompanying interim financial statements for the three-month periods ended June 30, 2009 are unaudited and include all adjustments (consisting of normal recurring adjustments) considered necessary by management for a fair presentation. The results of operations realized during an interim period are not necessarily indicative of results to be expected for a full year. These financial statements should be read in conjunction with the information filed as part of the Companys Annual Report on Form 10-K of the Company as filed with the United States Securities and Exchange Commission (the SEC) on April 10, 2009.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amount of revenues and expenses during the reporting period. Actual results could differ from these estimates.  NOTE 2 GOING CONCERN  Town and Countrys financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business for the foreseeable future. Since inception, the Company has accumulated losses aggregating to $19,903 and has insufficient working capital to meet operating needs for the next twelve months as of June 30, 2009, all of which raise substantial doubt about Town and Countrys ability to continue as a going concern.  The Company will continue seeking business and referrals from its business contacts in Idaho. No assurances can be given as to the likelihood of its success in obtaining new and additional business referrals.  7   ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995  Information set forth herein contains "forward-looking statements" which can be identified by the use of forward-looking terminology such as "believes," "expects," "may, should" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. No assurance can be given that the future results covered by the forward-looking statements will be achieved. The Company cautions readers that important factors may affect the Companys actual results and could cause such results to differ materially from forward-looking statements made by or on behalf of the Company. These factors include the Companys lack of historically profitable operations, dependence on key personnel, the success of the Companys business, ability to manage anticipated growth and other factors identified in the Company's filings with the Securities and Exchange Commission, press releases and/or other public communications.  The following discussion and analysis provides information which the Companys management believes to be relevant to an assessment and understanding of the Company's results of operations and financial condition. This discussion should be read together with the Company's financial statements and the notes to financial statements, which are included in this report.  This management's discussion and analysis or plan of operation should be read in conjunction with the financial statements and notes thereto of the Company for the three months ended June 30, 2009. The reported results may not necessarily reflect the future.  Operations  We have been performing commercial and residential real estate appraisals, principally in southeast Idaho, since 1976. As of August 18, 2009, we had one employee, John S. Chidester, who is currently available substantially on a full-time basis. Mr. Chidester, who is not under contract, will devote the amount of time to us that is necessary to perform the engagements obtained and to seek new ones.We also use independent contractors, who are relatives of Mr. Chidester, to assist in some appraisals. These independent contractors hold all necessary licenses.  A summary of operating results for the three month ended June 30, 2009 and 2008 follows:  20092008Revenues$27,585$27,335Operating expenses:Compensation and contractor fees20,10920,126General and administrative10,8148,209Total30,29328,335Net (loss)$(3,338)$(1,000)  Revenues -We completed 30 residential and 6 commercial appraisals during the three month ended June 30, 2009.  Compensation and contractor fees - consist of salary expenses to Mr. Chidester and fees to independent contractors who are related to Mr. Chidester.  General and administrative expenses  The principal component of general and administrative expenses is approximately $13,500 in each period presented paid to John Chidester in consideration for providing office space and services. In three months ending June 30, 2009, there was also $389 for professional fees.  Other -As a corporate policy, we will not incur any cash obligations that we cannot satisfy with known resources, of which there are currently none except as described in Liquidity below.  8   Liquidity  We do not have any credit facilities or other commitments for debt or equity financing. No assurances can be given that advances when needed will be available. We do not believe that we need funding to cover current operations because we do not have a capital intensive business plan and can also use independent contractors, if necessary or advisable, to assist in many projects. We will use funding, if obtained, to cover the salary of our president and to pay for marketing materials and proposal efforts. We currently have no formal salary arrangements with Mr. Chidester. While no annual salary or length of employment has been determined to date, we anticipate providing an annual salary not to exceed $100,000 commencing with the successful completion of several engagements. The salary will be paid out of revenues, if any, or accrued if sufficient cash is not available to make payments.The accrual will begin after we have generated revenue of at least $25,000.We may seek funding although have not done so as yet. However, we will conduct operations and seek client engagements even if no funding is obtained. The private capital will be sought from former business associates of our president or private investors referred to us by those associates. If a market for our shares ever develops, of which there can be no assurances and which is unlikely in the foreseeable future, we will use shares to compensate employees/consultants wherever possible. To date, we have not sought any funding source and have not authorized any person or entity to seek out funding on our behalf.  We are now subject to the reporting requirements of the Exchange Act of 1934 and will incur ongoing expenses associated with professional fees for accounting, legal and a host of other expenses for annual reports and proxy statements. We estimate that these costs may range up to $50,000 per year for the next few years and will be higher if our business volume and activity increases but lower during the first year of being public because our overall business volume will be lower, and we will not yet be subject to the requirements of Section 404 of the Sarbanes-Oxley Act of 2002. These obligations will reduce our ability and resources to fund other aspects of our business. We hope to be able to use our status as a public company to increase our ability to use noncash means of settling obligations and compensating independent contractors who provide services for us, although there can be no assurances that we will be successful in any of those efforts. We will reduce the compensation levels paid to management if there is insufficient cash generated from operations to satisfy these costs.  To meet commitments that become due more than 12 months in the future, we will have to obtain client engagements in sufficient number and at sufficient levels of profitability. There does not currently appear to be any other viable source of long-term financing except that management may consider various sources of debt and/or equity financing if the same financing can be obtained on terms deemed reasonable to management.   Recently Issued Accounting Pronouncements  The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.  Critical Accounting Policies  The preparation of financial statements and related notes requires us to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.  An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.  Financial Reporting Release No. 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements. There are no critical policies or decisions that rely on judgments that are based on assumptions about matters that are highly uncertain at the time the estimate is made. Note 2to the financial statements included in the Companys Annual Report on Form 10 K as filed with the United States Securities and Exchange Commission on April 10, 2009 includes a summary of the significant accounting policies and methods used in the preparation of our financial statements.  Seasonality  We do not typically experience a significant seasonal impact in our business.  Off-Balance Sheet Arrangements  We have no off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K, obligations under any guarantee contracts or contingent obligations. We also have no other commitments, other than the costs of being a public company that will increase our operating costs or cash requirements in the future.  9   ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a smaller reporting company, as defined by Rule 229.10(f)(1).  ITEM 4  CONTROLS AND PROCEDURES  We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act (defined below)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the "Exchange Act") is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.  Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2009. Based on this evaluation, our management has concluded that our disclosure controls and procedures adequately ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms.  The evaluation of our disclosure controls and procedures did not identify any change in our internal control over financial reporting that occurred during or subsequent to the quarter ended June 30, 2009 that has materially affected or is reasonably likely to materially affect our internal control over such reporting.  PART II  OTHER INFORMATION  Item 1Legal ProceedingsNoneItem 2Unregistered Sale of Equity Securities and Use of ProceedsNoneItem 3Defaults Upon Senior SecuritiesNoneItem 4Submission of Matters to a Vote of ShareholdersNoneItem 5Other InformationNone  10   ITEM 6  EXHIBITS AND REPORTS ON FORM 8-K  (a) Exhibits  Exhibit NumberDescription31.1Section 302 Certification Of Chief Executive And Chief Financial Officer32.1Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002  Chief Executive And Chief Financial Officer  (b) Reports of Form 8-K  None.  11   Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.    Town and Country Appraisal Service, Inc.(Registrant)/s/ John S. ChidesterJohn S. ChidesterTitle: President and Chief Financial OfficerAugust 18, 2009   12