You are provided with the following information for Blue Enterprises, effective as of its April 30, 2022, year end Account payable $849 Account receivable 915 Accumulated depreciation- equipment 670 Cash 1,375 Common stock 1,215 Cost of goods sold 1,075 Depreciation expense 320 Dividends 340 Equipment 2525 Income tax expense 180 Income taxes payable 150 Insurance expense 225 Interest expense 415 Inventory 1,072 Land 3,205 Mortgage payable 3,605 Notes payable (due March 31, 2023) 166 Prepaid Insurance 75 Returned earnings (beginning) 1,600 Salaries & wages expense 685 Salaries & wages payable 237 Sales revenue 5,205 Stock Investments (Short-term) 1,290 Prepare an Income statement for Blue Enterprises for the year ended April 30, 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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Blue Enterprises Income Statement for the Year Ended April 30, 2022:

Sales revenue $5,205 Cost of goods sold (1,075) Gross profit 4,130

Operating expenses: Salaries & wages expense (685) Depreciation expense (320) Insurance expense (225) Interest expense (415) Total operating expenses (1,645)

Income before income taxes 2,485 Income tax expense (180)

Net income $2,305

Explanation:

The income statement shows the revenues and expenses of a company over a given period, resulting in the net income or loss. The revenue of Blue Enterprises is $5,205, and the cost of goods sold is $1,075, resulting in a gross profit of $4,130. After deducting the operating expenses of $1,645, the income before income taxes is $2,485. After deducting the income tax expense of $180, the net income for the year ended April 30, 2022, is $2,305.

Prepare a retained earnings statement for Blue Enterprises for the year ended April 30, 2022 (List items that increase retained earnings first)

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Blue Enterprises Retained Earnings Statement for the Year Ended April 30, 2022:

Returned earnings (beginning) $1,600 Net income 2,305 Less: Dividends (340) Retained earnings (end) $3,565

Explanation:

The retained earnings statement shows the changes in the retained earnings account of a company over a given period. Retained earnings are the accumulated profits that are not distributed as dividends to shareholders.

In this case, the retained earnings account for Blue Enterprises had a beginning balance of $1,600. During the year ended April 30, 2022, the company generated a net income of $2,305, which increases the retained earnings account. The company also paid dividends of $340, which decreases the retained earnings account. Therefore, the ending balance of the retained earnings account for Blue Enterprises as of April 30, 2022, is $3,565 ($1,600 beginning balance + $2,305 net income - $340 dividends).

Prepare a retained earnings statement for Blue Enterprises for the year ended April 30, 2022 (List items that increase retained earnings first)