PR 1-2 B Financial statements The assets and liabilities of Wilderness Travel Service on April 30, 20Y7, and its revenue and expenses for the year are as follows: Accounts payable $ 25,000 Rent expense $ 75,000 Accounts receivable 210,000 Supplies 9,000 Cash 156,000 Supplies expense 1Z000 Common stock 35,000 Taxes expense 10,000 Fees earned 875,000 Utilities expense 38,000 Miscellaneous expense 15,000 Wages expense 525,000 Common stock was 525,000 and retained earnings was $155,000 as of May 1, 20Y6. During the year, additional common stock of $10,000 was issued for cash, and dividends of $40,000 were paid. Instructions 1. Prepare an income statement for the year ended April 30, 20Y7. 2. Prepare a statement of stockholders’ equity for the year ended April 30, 20Y7. 3. Prepare a balance sheet as of April 30, 20Y7. 4. What item appears on both the income statement and statement of stockholders' equity?

BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Solutions

Chapter 1, Problem 2PB
Textbook Problem

PR 1-2 B Financial statements

The assets and liabilities of Wilderness Travel Service on April 30, 20Y7, and its revenue and expenses for the year are as follows:

Accounts payable $ 25,000 Rent expense $ 75,000
Accounts receivable 210,000 Supplies 9,000
Cash 156,000 Supplies expense 1Z000
Common stock 35,000 Taxes expense 10,000
Fees earned 875,000 Utilities expense 38,000
Miscellaneous expense 15,000 Wages expense 525,000

Common stock was 525,000 and retained earnings was $155,000 as of May 1, 20Y6. During the year, additional common stock of $10,000 was issued for cash, and dividends of $40,000 were paid.

Instructions

1. Prepare an income statement for the year ended April 30, 20Y7.

2. Prepare a statement of stockholders’ equity for the year ended April 30, 20Y7.

3. Prepare a balance sheet as of April 30, 20Y7.

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

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Chapter 1 Solutions

Financial And Managerial Accounting
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