You're provided with the following information for Milner Corporation, effective as of its April 30, 2010, year-end.
Accounts payable ------------------- $ 2,400
Accounts receivable ----------------- 9,150
Accumulated depreciation-equipment ----------6,600
Depreciation expense ---------------- 2,200
Cash ------------------------------------- 21,955
Common stock ................................... 20,000
Dividends .......................................... 2,800
Equipment ........................................ 25,050
Sales revenue ..................................... 21,450
Income tax expense ................................ 1,100
Income taxes payable ................................ 300
Interest expense ...................................... 350
Interest payable ...................................... 175
Notes payable (due in 2016) ..................... 5,700
Prepaid rent .......................................... 380
Rent expense ........................................ 760
Retained earnings, beginning .................. 13,960
Salaries and wages expense ...................... 6,840
Required:
A. Prepare an income statement and a retained earnings statement for Milner Corporation for the year ended April 30, 2010.
B. Prepare a classified balance sheet for Rapp as of April 30, 2010.
C. Explain how each financial statement interrelates with the others.