Question

Financial Statements

The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2019, the end of the year, and its revenue and expenses for the year are listed below. The capital of Harper Borg, owner, was $48,220 at May 1, 2018, the beginning of the year, and the owner withdrew $26,000 during the year.

Accounts payable	$16,130
Accounts receivable	86,350
Cash	174,300
Fees earned	634,500
Miscellaneous expense	5,060
Rent expense	84,390
Supplies	7,510
Supplies expense	13,500
Taxes expense	10,000
Utilities expense	50,630
Wages expense	241,110

Required:

1. Prepare an income statement for the year ended April 30, 2019.

Wilderness Travel Service
Income Statement
For the Year Ended April 30, 2019
		$
Expenses:
	$
Total expenses
		$

2. Prepare a statement of owner's equity for the year ended April 30, 2019.

Wilderness Travel Service
Statement of Owner's Equity
For the Year Ended April 30, 2019
		$
	$
		$

3. Prepare a balance sheet as of April 30, 2019. When entering assets, enter them in order of liquidity.

Wilderness Travel Service
Balance Sheet
April 30, 2019
Assets
	$
Total assets	$
Liabilities
	$
Owner's Equity
Total liabilities and owner's equity	$

4. What item appears on both the statement of owner's equity and the balance sheet?

Check My Work

Answer 1

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Wilderness Travel Service
Answer 1- Income Statement
Particulars	Amount $
Fees earned	634,500.00
Total Revenue	634,500.00
Less: Expenses
Miscellaneous Expense	5,060.00
Rent Expense	84,390.00
Supplies Expense	13,500.00
Taxes Expense	10,000.00
Utilities expense	50,630.00
Wages expense	241,110.00
Total Operating Expenses	404,690.00
Net Income	229,810.00
Answer 2- Statement of equity	Amount $
Opening Balance	48,220.00
Add: Profit	229,810.00
Less: Drawings	(26,000.00)
Closing balance	252,030.00
Answer 3- Balance Sheet
Assets	Amount $
Current Assets
Cash	174,300.00
Accounts receivable	86,350.00
Supplies	7,510.00
Current Assets	268,160.00
Total Assets	268,160.00
Liabilities & Owner's Equity
Liabilities
Current Liabilities
Accounts Payable	16,130.00
Current Liabilities	16,130.00
Total Liabilities	16,130.00
Owner's Equity	252,030.00
Total Liabilities & Owner's Equity	268,160.00
Answer 4
Owner's Capital and Retained Earnings