The assets and liabilities of Wilderness Travel Service on April 30, 20Y7, and its revenue and expenses for the year are as follows:. Accounts payable $25,000
Rent expense $75,000
Accounts receivable 210,000
Supplies 9,000
Cash 156,000
Supplies expense 12,000
Common stock 35,000
Taxes expense 10,000
Fees earned 875,000
Utilities expense 38,000
Miscellaneous expense 15,000
Wages expense 525,000
Common stock was $25,000 and retained earnings was $155,000 as of May 1, 20Y6. During the year, additional common stock of $10,000 was issued for cash, and dividends of $40,000 were paid.
Required:
1. Determine the amount of retained earnings as of July 1, 2013.
2. State the assets, liabilities, and stockholders’ equity as of July 1 in equation form similar to that shown in this chapter. In tabular form below the equation, indicate the increases and decreases resulting from each transaction and the new balances after each transaction.
3. Prepare an income statement for July, a retained earnings statement for July, and a balance sheet as of July 31, 2013.
4. Prepare a statement of cash flows for July.