You are provided with the following information for Vern Corporation, effective as of its April 30, 2014, year-end.

Accounts payable $ 3,100 Accounts receivable 10,150 Accumulated depreciation—equipment 6,600 Depreciation expense 3,200 Cash 20,955 Common stock 20,000 Dividends 2,800 Equipment 24,250 Sales revenue 20,450 Income tax expense 700 Income taxes payable 300 Interest expense 350 Interest payable 175 Notes payable (due in 2018) 4,700 Prepaid rent 380 Rent expense 660 Retained earnings, beginning 13,960 Salaries and wages expense 5,840 Instructions

(a) Prepare an income statement and a retained earnings statement for Vern Corporation for the year ended April 30, 2014.

(b) Prepare a classified balance sheet for Vern as of April 30, 2014.

AppendixLO1