Financial statements Obj. 5 The assets and liabilities of Wilderness Travel Service on April 30, 20Y7, and its revenue and expenses for the year are as follows:

Accounts payable $ 25,000 Rent expense $ 75,000 Accounts receivable 210,000 Supplies 9,000 Cash 156,000 Supplies expense 12,000 Common stock 35,000 Taxes expense 10,000 Fees earned 875,000 Utilities expense 38,000 Miscellaneous expense 15,000 Wages expense 525,000 Common stock was $25,000 and retained earnings was $155,000 as of May 1, 20Y6. During the year, additional common stock of $10,000 was issued for cash, and dividends of $40,000 were paid.

Instructions 1 Prepare an income statement for the year ended April 30, 20Y7.

2 Prepare a statement of stockholders’ equity for the year ended April 30, 20Y7.

3 Prepare a balance sheet as of April 30, 20Y7.

4 What item appears on both the income statement and statement of stockholders’ equity?

AppendixLO1