The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2014, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings was $145,000 at May 1, 2013, the beginning of the current year, and dividends of $40,000 were paid during the current year.

Instructions
1. Prepare an income statement for the current year ended April 30, 2014.
2. Prepare a retained earnings statement for the current year ended April 30, 2014.
3. Prepare a balance sheet as of April 30, 2014.
4. What item appears on both the income statement and retained earningsstatement?

Transcribed Image Text:

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