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

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?

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Accounts payable Accounts receivable Rent expense Supplies Supplies expense $ 75,000 $ 25,000 210,000 9,000 Cash Common stock Fees earned Miscellaneous expense 12,000 156,000 35,000 Taxes expense Utilities expense Wages expense 10,000 875,000 38,000 15,000 525,000