Chapter 1, Problem 1.2BPR

a)

To determine

Financial statements: Financial statements refer to those statements, which are prepared by the Company according to particular formats in accounting to show its financial position. The financial statements consist of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

To prepare: The income statement for the year ended April 30, 2016 for WT Service.

b)

To determine

To prepare: The statement of retained earnings for the year ended April 30, 2016 for WT Service.

c)

To determine

To prepare: The balance sheet for the year ended April 30, 2016 for WT Service.

d)

To determine

To Identify: The items that appear on both income statement and statement of retained earnings of WT Service.