Response to the following questions:
1. Identify each of the following items as (a) an asset, (b) a liability, (c) revenue, (d) an expense, or (e) a dividend:
1. Amounts due from customers
2. Amounts owed vendors
3. Cash on hand
4. Cash paid to stockholders
5. Cash sales
6. Equipment
7. Note payable owed to the bank
8. Rent paid for the month
9. Sales commissions paid to salespersons
10. Wages paid to employees
2. Financial information related to Madras Company for the month ended April 30, 2006, is as follows:
Net income for April $ 73,000
Dividends during April 12,000
Retained earnings, April 1, 2006 297,200
Prepare a retained earnings statement for the month ended April 30, 2006.