Answer:
Wilderness Travel Service
a. WILDERNESS TRAVEL SERVICE
Income Statement for the year ended April 30, 2018:
Fees earned 875,000
Miscellaneous expense 15,000
Rent expense 75,000
Supplies expense 12,000
Taxes expense 10,000
Utilities expense 38,000
Wages expense 525,000 675,000
Net Income $200,000
Retained Earnings, May 1, 2017 $145,000
b. WILDERNESS TRAVEL SERVICE
Retained Earnings Statement for the year ended April 30, 2018:
Retained Earnings, May 1, 2017 $145,000
Dividends (40,000)
Retained Earnings, May 1, 2018 $305,000
c. WILDERNESS TRAVEL SERVICE
Balance Sheet for the year ended April 30, 2018:
Assets:
Cash $146,000
Accounts receivable 210,000
Supplies 9,000
Total assets $365,000
Liabilities + Equity:
Accounts payable $25,000
Common stock 35,000
Retained Earnings 305,000 340,000
Total Liabilities + Equity $365,000
Explanation:
a) Data:
Accounts payable $25,000
Accounts receivable 210,000
Cash 146,000
Common stock 35,000
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
Retained Earnings, May 1, 2017 145,000
Dividends 40,000
b) Wilderness Travel Service's Income Statement shows the difference between revenue and expenses, called the net income. The statement of retained earnings shows the movement in the retained earnings from one period to the next. And the balance sheet shows the assets and liabilities, including the equity of the company.
