Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Current Issues In Auditing

Authors: Michael J Sherer, W Stuart Turley

3rd Edition

1853963658, 978-1853963650

More Books

Students also viewed these Accounting questions

Question

2. What is the business value of security and control?

Answered: 1 week ago