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.