Income statement, retained earnings statement, and balance sheet The amounts of
ID: 2461945 • Letter: I
Question
Income statement, retained earnings statement, and balance sheet The amounts of the assets and liabilities of Utah Travel Service as of April 30, 20Y6, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $300,000, and the capital stock was $90,000 as of May 1, 20Y5, the beginning of the current year. Dividends of $75,000 were paid during the current year. Accounts payable $ 71,500 Accounts receivable 188,100 Cash 428,300 Fees earned 1,594,200 Miscellaneous expense 16,000 Rent expense 226,800 Supplies 20,100 Supplies expense 42,600 Taxes expense 33,600 Utilities expense 135,000 Wages expense 890,200 Prepare an income statement for the current year ended April 30, 20Y6. Prepare a retained earnings statement for the current year ended April 30, 20Y6. Prepare a balance sheet as of April 30, 20Y6.Explanation / Answer
1) INCOME STATEMENT fees earned 1594200 expenses: rent expense 226800 supplies expense 42600 utilities expense 135000 wages expense 890200 miscellaneous expense 16000 1310600 profit before tax 283600 tax expense 33600 net income 250000 2) RETAINED EARNINGS beginning balance 300000 add net income 250000 550000 less: dividends 75000 ending balance 475000 3) BALANCE SHEET ASSETS: Current Assets: cash 428300 accounts receivable 188100 supplies 20100 636500 Non current assets 0 TOTAL ASSETS 636500 LIABILITIES: Current liabilities: accounts payable 71500 71500 Equity: capital stock 90000 retained earnings 475000 565000 TOTAL LIABILITIES & EQUITY 636500