Response to the following problem:
The amounts of the assets and liabilities of Chickadee Travel Service at April 30, 2006, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $35,000, and the capital stock was $15,000 at May 1, 2005, the beginning of the current year. Dividends of $30,000 were paid during the current year.
Accounts payable $ 12,200
Accounts receivable 31,350
Cash 53,050
Fees earned 263,200
Miscellaneous expense 2,950
Rent expense 37,800
Supplies 3,350
Supplies expense 7,100
Taxes expense 5,600
Utilities expense 22,500
Wages expense 131,700
Instructions
1. Prepare an income statement for the current year ended April 30, 2006.
2. Prepare a retained earnings statement for the current year ended April 30, 2006.
3. Prepare a balance sheet as of April 30, 2006.