Financial statementsThe assets and liabilities of Global Travel Agency on December 31, 20Y5.and its revenue and expenses for the year are as follows: Accounts payableAccounts receivableCashCommon stockFees earnedLandMiscellaneous expense Rent expenseSuppliesSupplies expenseUtilities expenseWages expense $ 108,000539,000200,000575,000940,0001,500,000$ 19,50056,0006,00012,70034,80415,000 Common stock was $525,000 and retained earnings was $1,250,000 as ofJanuary 1. 20Y5. During the year, additional common stock of $50,000was issued for cash, and dividends of $90,000 were paid. Instructions1. Prepare an income statement for the year ended December 31.20Y5.2. Prepare a statement of stockholders' equity for the year ended December 31. 2015.3. Prepare a balance sheet as of December 31, 20Y5.4. What items appears on both the statement of stockholders'equity and the balance sheet?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Financial statements
The assets and liabilities of Global Travel Agency on December 31, 20Y5.
and its revenue and expenses for the year are as follows:

Accounts payable
Accounts receivable
Cash
Common stock
Fees earned
Land
Miscellaneous expense 
Rent expense
Supplies
Supplies expense
Utilities expense
Wages expense
$ 108,000
539,000
200,000
575,000
940,000
1,500,000
$ 19,500
56,000
6,000
12,700
34,80
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.
2. Prepare a statement of stockholders' equity for the year ended December 31. 2015.
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?

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