Financial Statements Obj. 5The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue and expenses for the year are as follows: Accounts payable $ 108,000 Miscellaneous...

Financial Statements

Obj. 5The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue and expenses for the year are as follows:

















































Accounts payable	$ 108,000		Miscellaneous expense	$ 19,500
Accounts receivable	539,000		Rent expense	56,000
Cash	200,000		Supplies	6,000
Common stock	575,000		Supplies expense	12,700
Fees earned	940,000		Utilities expense	34,800
Land	1,500,000		Wages expense	415,000




Common stock was $525,000 and retained earnings was $1,250,000 as of January 1, 20Y5. During the year, additional common stock of $50,000 was issued for cash, and dividends of $90,000 were paid.




Instructions



1. 
   

   Prepare an income statement for the year ended December 31, 20Y5.

   
   Answer

   Check Figure:Net income: $402,000

   
   


2. 
   

   Prepare a statement of stockholders’ equity for the year ended December 31, 20Y5.

   
   


3. 
   

   Prepare a balance sheet as of December 31, 20Y5.

   
   


4. 
   

   What items appears on both the statement of stockholders’ equity and the balance sheet?