Exercise 2 BRAXTON WHOLESALERS-PROPRIETORSHIP (in 000s of dollars) SQ Jo Ado Capital - Braxton, May 1, 2018 Cash Net sales Accounts receivable Gross income (profit) Accumulated depreciation, May 1, 2018 Net income Notes payable-bank Purchases 520 3,502 Long-term bank loan 26 Prepaid expenses 29 52 822 Depreciation expense Inventory, May 1, 2018 Accrued expenses payable Drawings-Braxton Seiling expenses Equipment, cost inventory, April 30, 2019 34 56 437 520 1,022 Capital - Oliver, April 30, 2019 Cost of goods sold 634 3,302 Accounts payable 346 General and administrative expenses 445 Assignment Different balance sheet and income statement accounts are listed above in random order. The balance sheet accounts are as at April 30, 2019, except where noted. The income statement amounts are for the year ending April 30, 2019 1. Determine whether each account is a balance sheet or an income statement item. 2. Prepare an income statement for Braxton Wholesalers - Proprietorship for the year ending April 30, 2019. Note: Proprietorships do not pay corporate taxes - all income is reported by the proprietor as personal income. 3. Prepare a statement of retained earnings for the year ended April 30, 2019. 4. Prepare a balance sheet as at April 30, 2019