Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 29

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 follow. The capital of Harper Borg, owner, was $180,000 at May 1, 2018, the beginning of the year, and the owner withdrew $40,000 during the year.

Instructions
1. 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