Chapter 1, Problem 1.2BPR

Financial statements

The amounts of the assets and liabilities of Wilderness Travel Service at April 50, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $145,000 at May I, 2017, the beginning of the year, and dividends of $40,000 were paid during the year.

Accounts payable	$ 25,000	Rent expense	$ 75,000
Accounts receivable	210,000	Supplies	9,000
Cash	146,000	Supplies expense	12,000
Common stock	35,000	Taxes expense	10,000
Fees earned	875,000	Utilities expense	38,000
Miscellaneous expense	15,000	Wages expense	525,000

Instructions

1. 1. Prepare an income statement for the year ended April 30, 2018.
2. 2. Prepare a retained earnings statement for the year ended April 30, 2018.
3. 3. Prepare a balance sheet as of April 30, 2018
4. 4. What item appears on both the income statement and retained earnings statement?