You are provided with the following information for Vern Corporation, effective as of its April 30, 2014,

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.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...