Below are the amounts of the assets and liabilities of Hiawatha Travel Service at April 30, 2004, the end of the current year, and its revenue and expenses for the year. The retained earnings were $13,000 and the capital stock was $12,000 at May 1, 2003, the beginning of the current year. During the current year, dividends of $15,000 were paid.
|
Accounts payable
|
$ 6,100
|
Rent expense
|
$ 18,900
|
|
Accounts receivable
|
15,675
|
Prepaid expenses
|
1,675
|
|
Cash
|
26,525
|
Taxes expense
|
2,800
|
|
Fees earned
|
131,600
|
Utilities expense
|
14,800
|
|
Miscellaneous expense
|
1,475
|
Wages expense
|
65,850
|
Instructions
1. Prepare an income statement for the current year ended April 30, 2004.
2. Prepare a retained earnings statement for the current year ended April 30, 2004.
3. Prepare a balance sheet as of April 30, 2004.