PR 1-2B. Financial Statements

OBJ. 5

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.

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

INSTRUCTIONS

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

2. Prepare a statement of owners 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 owners equity?