Chapter 1, Problem 1.2BPR

Financial statements

The assets and liabilities of Wilderness Travel Service on April 30, 20Y7, and its revenue and expenses for the year are as follows:

Accounts payable	$ 75,000
Accounts receivable	210,000
Cash	156,000
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

Common stock was $25,000 and retained earnings was $155,000 as of May 1, 20Y6. During the year, additional common stock of $10,000 was issued for cash, and dividends of $40,000 were paid.

Instructions

1. 1. Prepare an income statement for the year ended April 30, 20Y7.
2. 2. Prepare a statement of stockholders’ equity for the year ended April 30, 20Y7.
3. 3. Prepare a balance sheet as of April 30, 20Y7.
4. 4. What item appears on both the income statement and statement of stockholders’ equity?