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 retained earnings was $145,000 on May 1, 2015, the beginning of the year, and dividends of $40,000 were paid during the year.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 Required:1. Prepare an income statement for the year ended April 30, 2016. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.2. Prepare a retained earnings statement for the year ended April 30, 2016. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Enter all amounts as positive numbers. The word "Less" or "Add" is not needed in the Retained Earnings Statement.3. Prepare a balance sheet as of April 30, 2016. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.4. What item appears on both the income statement and retained earnings statement?MUST INCLUDE THE FOLLOWING LABELS/DESCRIPTIONLabels April 30, 2016 Expenses For the Year Ended April 30, 2016 Amount Descriptions Decrease in retained earnings Dividends Increase in retained earnings Net income Net loss Retained earnings Retained earnings, April 30, 2016 Retained earnings, May 1, 2015 Total assets Total expenses Total liabilities and stockholders’ equity Total stockholders’ equity

Answer 1

Answer:

1, 2 and 3 See attached file

4) Net Income  

Explanation:

The Balance Sheet is the financial statement that reports a company's assets, liabilities and stockholders' equity at a specific point in time. Provides a snapshot of what a company owns and owes, as well as the amount invested by stockholders. The stockholders' equity includes the amount of investment made by stockholders and retained earnings, which is calculated in The Statement of Retained Earnings.  

The Statement of Retained Earnings begins with the beginning balance in the retained earnings account, and then adds or subtracts net income or loss and subtracts dividend payments to arrive at the ending retained earnings balance. The net income or loss is calculated in the Income Statement.

The Income Statement, also known as the profit and loss statement or the statement of revenue and expense, focuses on the company’s revenues and expenses during a particular period with the objective of calculating the company net income or loss for that period.