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 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?

Answer 1