Question
The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2018, the end of the year, and its revenue and expenses
The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings was $145,000 at May 1, 2017, 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, 2018.
Wilderness Travel Service | ||
Income Statement | ||
For the Year Ended April 30, 2018 | ||
$ | ||
Expenses: | ||
$ | ||
Total expenses | ||
$ |
2. Prepare a retained earnings statement for the year ended April 30, 2018. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.
Wilderness Travel Service | ||
Retained Earnings Statement | ||
For the Year Ended April 30, 2018 | ||
$ | ||
$ | ||
$ |
3. Prepare a balance sheet as of April 30, 2018. When entering assets, enter them in order of liquidity.
Wilderness Travel Service | ||
Balance Sheet | ||
April 30, 2018 | ||
Assets | ||
$ | ||
Total assets | $ | |
Liabilities | ||
$ | ||
Stockholders' Equity | ||
$ | ||
Total stockholders' equity | ||
Total liabilities and stockholders' equity | $ |
4. What item appears on both the income statement and retained earnings statement?
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