Critical Thinking Assignment #$1$

Cody Tech Support is a Cody, Wyoming based company that provides information technology support

to businesses and individuals in the Big Horn Basin area. Analysis of the transactions of Cody Tech Support

for April $2022$ revealed the following. Assume all transactions are done with cash.

Service Revenue $$20,000\mathrm{.}00$

Building Rent Expense $$1,000\mathrm{.}00$

Utilities Expense $$212\mathrm{.}00$

Advertising Expense $$557\mathrm{.}00$

Salaries and Wages Expense $$14,400\mathrm{.}00$

Fuel Expense $$832\mathrm{.}00$

Cash Dividends Declared and Paid $$112\mathrm{.}00$

In addition to the transactions listed above, the balance sheet amounts on April $30$th$,2022$ included

the following accounts:

Cash $$22,000\mathrm{.}00$

Equipment $$14,000\mathrm{.}00$

Accounts Payable $$2,200\mathrm{.}00$

Capital Stock $$30,000\mathrm{.}00$

Retained Earnings as of April $1,2022$ $$3,800\mathrm{.}00$

Based on the information above, please complete the following requirements:

$1.$ Prepare an income statement for April $2022.$

$2.$ Prepare a statement of retained earnings for April $2022.$

$3.$ Prepare a balance sheet as of April $30,2022.$

$4.$ Comment on the overall well$-$being of the company, particularly referring to its solvency.