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 follow. The capital ofHarper Borg, owner, was $180,000 at May 1, 2018, the beginning of the year, and theowner withdrew $40,000 during the yearAccounts payable25,000SuppliesSupplies expenseTaxes expenseUtilities expense$9,000Accounts receivable210,00012,000Cash146,00010,000Fees earned875,00038,000Miscellaneous expense15,000Wages expense525,000Rent expense75,000Instructions1. Prepare an income statement for the year ended April 30, 2019.2. Prepare a statement of owner's equity for the year ended April 30, 2019.3. Prepare a balance sheet as of April 30, 2019.4. What item appears on both the income statement and statement of owner's equity?

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

Answered: The amounts of the assets and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Keith Williams and Brian Adams were students when they formed a partnership several years ago for a part-time business called Music Works. Adjusted trial balance information for the year ended December 31, 2020, appears below. Account Balance* Account Balance* Accounts payable $ 9,800 Keith Williams, capital** $ 31,300 Accumulated depreciation 78,000 Keith Williams, withdrawals 53,000 Brian Adams, capital** 25,000 Note payable, due May 2022*** 126,000 Brian Adams, withdrawals 63,000 Office supplies 19,000 Cash 211,600 Revenues 486,000 Equipment 306,000 Utilities payable 1,500 Expenses 105,000 *Assume all account balances are normal.**The partners made no investments during the year.***$43,000 of the note payable is due in May 2021.Required:1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profit/(losses) are to be shared…
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BLOSSOM's balance sheet at December 31, 2020, is as follows. (See Image 1) (See Image 2) Other information about BLOSSOM is as follows. Salary expense, all paid with cash during 2021 $700 Sales, all for cash 2,990 Purchases, all for cash 2,020 Inventory at 12/31/21 1,790 Property originally cost $2,100 and is depreciated on a straight-line basis over 25 years with no residual value.Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year.Dividends declared and paid are $190 in 2021. Prepare an income statement for 2021. (Round answers to 1 decimal place)

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