The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2016, the end

Question:

The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2016, the end of the year, and its revenue and expenses for the year follow. The capital of Harper Borg, owner, was $180,000 at May 1, 2015, the beginning of the year, and the owner withdrew $40,000 during the year.

Accounts payable $ 25,000

Accounts receivable 210,000

Cash 146,000

Fees earned 875,000

Miscellaneous expense 15,000

Rent expense 75,000

Supplies $ 9,000

Supplies expense 12,000

Taxes expense 10,000

Utilities expense 38,000

Wages expense 525,000

Instructions

1. Prepare an income statement for the year ended April 30, 2016.

2. Prepare a statement of owner's equity for the year ended April 30, 2016.

3. Prepare a balance sheet as of April 30, 2016.

4. What item appears on both the income statement and statement of owner's equity?

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...