Question

increased stockholder 48 Obis and its revenue and The assets and Chapter 1 Introduction to Acourong and Business Briefly explain why issuing common stock and revenues increas equity, while dividents and expenses decreased stockholders' equity 3. Determine the net income for March How much did March transactions increase or decrease stockholders' equiry PR 1-28 Financial statements 1. Net income The assets and liabilities of Wilderness Travel Service on April 30, 2017 and $200.000 esyenses for the year are as follows Accounts payable Rent expense Accounts receivable Supplies Supplies expense Taxes expense Ulices expense 15.000 Wages expense Common stock was $25.000 and retained earnings was $155.000 as of May 1, 2016. Durine ih additional common stock of $10,000 was issued for cash, and dividends of $10,000 were paid $ 25.000 210.000 156.000 35.000 875.000 $ 75.000 9,000 12.000 10.000 38.000 525,000 76. During the Common stock Fees and Miscellaneous expense Instructions 1. Prepare an income statement for the year ended April 30, 2017. 2. Prepare a statement of stockholders' equity for the year ended April 30, 2017 3. Prepare a balance sheet as of April 30, 2017 4. What item appears on both the income statement and statement of stockholders' equiry ONS PR 1-3B Financial statements Jose Loder established Bronco Consulting on August 1, 2011. The effect of each transaction in the balances after each transaction for August follow: 1. Net income: $10.900 Stockholders' Equity Fees Salaries Rent Auto Supplies - Dividends + Eamed - Expense - Expense - Expense - Expense - Expert Receivable - Supplies - Payable + Stock Cash +75.000 +92.000 - 27.000 -27 000 99.000 Bal 134.000 -27,000 +33.000 125.000 - 27000 Bal 134.000 9 -71.000 Bal 111,000 h -58,000 -15.500 125.000 -27 000 -15.500 -58.000 - 58,000 -27,000 -15.500 -58.000 125.000 125.000 - 50.000 -5.000 - 27000 -15.500 125.000 -58.000 27000 -15.500 Instructions DEL TINPLATE 1. Prepare an income statement for the month ended August 31, 20Y1. 2. Prepare a statement of stockholders' equity for the month coded August 31, 2011 3. Prepare a balance sheet as of August 31, 2011 (Optionab Prepare a statement of cash flows for the month endine August 31.40 onth ending August 31, 20Y1.

Answer 1

Solution:

1.

Wilderness Travel Service
Income Statement for the year ended April 30, 20Y7
Revenues:
Fees earned		875000
Expenses:
Rent Expense	75000
Supplies Expense	12000
Wages Expense	525000
Utilities expense	38000
Taxes Expense	10000
Miscellaneous Expense	15000
Total expenses		675000
Net income		200000

2.

Statement of Shareholders Equity
Common Stock , May 1, 20Y6		25000
Additional Paid in Capital
Common stock Issues		10000
Total Paid in Capital		35000
Retained Earnings
Retained Earnings, May 01, 20Y6	155000
Add: Net Income	200000
	355000
Less: Dividends	40000
Retained Earnings, Apr 30, 20Y7	315000	315000
Total Stockholders Equity		350000

3.

Assets
Cash		156000
Accounts receivable		210000
Supplies		9000
Total assets		375000
Liabilities and Stockholders' Equity
Liabilities
Accounts payable		25000
Stockholders' equity
Common stock	35000
Retained earnings	315000	350000
Total liabilities and stockholders' equity		375000

4. Net Income appears both in Income Statement and Statement of Shareholders Equity.