You are provided with the following information for Rapp Corporation, effective as of its April 30, 2012, year-end.

Instructions

(a) Prepare an income statement and a retained earnings statement for Rapp Corporation for the year ended April 30, 2012.

(b) Prepare a classified balance sheet for Rapp as of April 30, 2012.

(c) Explain how each financial statement interrelates with the others.

Transcribed Image Text:

Accounts payable Accounts receivable Accumulated depreciation equipment $ 2,100 9,150 6,600 Depreciation expense Cash Common stock 2,200 21,955 20,000 Dividends Equipment Sales revenue 2,800 24,250 21,450 Income tax expense 1,600 Income taxes payable 300 Interest expense 350 Interest payable 175 Notes payable (due in 2016) 5,700 Prepaid rent 380 Rent expense 760 Retained earnings, beginning 13,960 Salaries and wages expense 6,840