The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2016, the end of the year, and its revenue and expenses for the year follow. The retained earnings was $145,000 on May 1, 2015, the beginning of the year, and dividends of $40,000 were paid during the year.

Accounts payable	$ 25,000
Accounts receivable	210,000
Cash	146,000
Common stock	35,000
Fees earned	875,000
Miscellaneous expense	15,000
Rent expense	75,000
Supplies	9,000
Supplies expense	12,000
Taxes expense	10,000
Utilities expense	38,000
Wages expense	525,000

Required:

1.

Prepare an income statement for the year ended April 30, 2016. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.

2.

Prepare a retained earnings statement for the year ended April 30, 2016. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Enter all amounts as positive numbers. The word Less or Add is not needed in the Retained Earnings Statement.

3.

Prepare a balance sheet as of April 30, 2016. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

4.

What item appears on both the income statement and retained earnings statement? MUST INCLUDE THE FOLLOWING LABELS/DESCRIPTION

Labels
April 30, 2016
Expenses
For the Year Ended April 30, 2016
Amount Descriptions
Decrease in retained earnings
Dividends
Increase in retained earnings
Net income
Net loss
Retained earnings
Retained earnings, April 30, 2016
Retained earnings, May 1, 2015
Total assets
Total expenses
Total liabilities and stockholders equity
Total stockholders equity