You are provided with the following information for Rapp Corporation, effective as of its April 30, 2012, year-end.
Accounts payable
..
$ 2,100
Accounts receivable
.. 9,150
Accumulated depreciation-equipment
.
. 6,600
Depreciation expense
2,200
Cash
. 21,955
Common stock
.. 20,000
Dividends
2,800
Equipment
. 24,250
Sales revenue
. 21,450
Income tax expense
.. 1,600
Income taxes payable
.. 300
Interest expense
.. 350
Interest payable
.. 175
Notes payable (due in 2016)
5,700
Prepaid rent
380
Rent expense
. 760
Retained earnings, beginning
13,960
Salaries and wages expense
. 6,840
Instructions
(a) Prepare an income statement and a retained earnings statement for Rapp
Corporation for the year ended April 30, 2012.
(b) Prepare a classified balance sheet for Rapp as of April 30, 2012.
(c) Explain how each financial statement interrelates with the others.