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Question
The following account balances are included in the adjusted trial balance of Delta Inc. as of April 30, 2015. All of the accounts have normal balances.
| Accounts Payable | $281,700 |
| Accounts Receivable | 753,950 |
| Accumulated DepreciationEquipment | 128,900 |
| Common Stock | 380,600 |
| Cash | 351,340 |
| Dividends | 20,000 |
| Depreciation Expense | 57,750 |
| Equipment | 672,500 |
| Income Tax Payable | 138,300 |
| Income Tax Expense | 138,300 |
| Interest Receivable | 4,300 |
| Interest Revenue | 114,100 |
| Notes Payable (long-term) | 229,600 |
| Notes Payable | 356,040 |
| Prepaid Insurance | 6,800 |
| Prepaid Rent | 11,200 |
| Salaries and Wages Payable | 23,400 |
| Repairs and Maintenance Expense | 247,900 |
| Rent Expense | 30,500 |
| Retained Earnings | 207,400 |
| Service Revenue | 904,000 |
| Supplies | 216,900 |
| Supplies Expense | 336,200 |
| Unearned Revenue | 83,600 |
Required:
Part a. Prepare an income statement.
Part b. Prepare a statement of retained earnings
Answer
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