The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 20Y5, the end of the year, and its revenue and expenses for the year follow. The capital of Harper Borg, owner, was $180,000 at May 1, 20Y4, the beginning of the year, and the owner withdrew $40,000 during the year.

Instructions
1. Prepare an income statement for the year ended April 30, 20Y5.

2. Prepare a statement of owner’s equity for the year ended April 30, 20Y5.

3. Prepare a balance sheet as of April 30, 20Y5.

4. What item appears on both the income statement and statement of owner’s equity?

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Accounts payable $ 25,000 $ 9,000 Supplies Supplies expense Taxes expense Utilities expense Accounts receivable 210,000 12,000 Cash 146,000 10,000 Fees earned 875,000 38,000 Miscellaneous expense 15,000 Wages expense 525,000 Rent expense 75,000