Financial statements
The amounts of the assets and liabilities of Journey Travel Agency at December 31, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $1,341,000 on January 1, 2018, the beginning of the year. During the year, dividends of $75,000 were paid.
Accounts payable $69,500 Miscellaneous expense $14,500
Accounts receivable $236,500 Rent expense $22,500
Cash 190,500 Supplies 7,000
Common stock 450,000 Supplies expense 11,300
Fees earned 383,500 Utilities expense 16,700
Land 1,500,000 Wages expense 170,000
Instructions
1. Prepare an income statement for the year ended December 31, 2018.
2. Prepare a retained earnings statement for the year ended December 31, 2018.
3. Prepare a balance sheet as of December 31, 2018.
4. What item appears on both the retained earnings statement and the balance sheet?