During the month of April, you conduct art seminars for children. On April 1, you borrow $500 from your parents, buy $400 of supplies, and pay $50 for advertising on the radio and $25 to rent a room in a local recreation center. You charge $20 per child per seminar. At the end of the month, you have held seminars for 80 children, of which you have received payment for 76. You have $30 of supplies remaining, and you pay your parents $5 for the use of their money during the month.
Required
Prepare an income statement and a statement of retained earnings for the month ending April 30 and a balance sheet at April 30.