Question

You are provided with the following information for Vern Corporation, effective as of its April 30, 2014, year-end.
Accounts payable.............. $ 3,100
Accounts receivable............... 10,150
Accumulated depreciation—equipment..... 6,600
Depreciation expense............ 3,200
Cash.................. 20,955
Common stock.............. 20,000
Dividends................ 2,800
Equipment................ 24,250
Sales revenue............... 20,450
Income tax expense............. 700
Income taxes payable............. 300
Interest expense............. 350
Interest payable.............. 175
Notes payable (due in 2018) ........ 4,700
Prepaid rent............... 380
Rent expense............... 660
Retained earnings, beginning....... 13,960
Salaries and wages expense......... 5,840

Instructions
(a) Prepare an income statement and a retained earnings statement for Vern Corporation for the year ended April 30, 2014.
(b) Prepare a classified balance sheet for Vern as of April 30, 2014.



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  • CreatedApril 07, 2014
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