OB The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue a expenses for the year are as follows: FIEI $ 108,000 539,000 200,000 575,000 940,000 1,500,000 Accounts payable Miscellaneous expense $ 19,500 Rent expense Accounts receivable 56,000 Cash Supplies Supplies expense Utilities expense 6,000 Common stock 12,700 Fees earned 34,800 Land Wages expense 415,000 Common stock was $525,000 and retained earnings was $1,250,000 as of January 1, 20Y5. Durir the additional common stock of $50,000 was issued for cash, and dividends of $90,0C year, 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, 20Y5. 3. Prepare a balance sheet as of December 31, 20Y5
OB The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue a expenses for the year are as follows: FIEI $ 108,000 539,000 200,000 575,000 940,000 1,500,000 Accounts payable Miscellaneous expense $ 19,500 Rent expense Accounts receivable 56,000 Cash Supplies Supplies expense Utilities expense 6,000 Common stock 12,700 Fees earned 34,800 Land Wages expense 415,000 Common stock was $525,000 and retained earnings was $1,250,000 as of January 1, 20Y5. Durir the additional common stock of $50,000 was issued for cash, and dividends of $90,0C year, 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, 20Y5. 3. Prepare a balance sheet as of December 31, 20Y5
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Only parts 3 and 4 for PR 1-2 A
Transcribed Image Text:10:31 1
pense Expense
Briefly explain why issuing common stock and revenues increased stockholders'
equity, while dividends and expenses decreased stockholders' equity.
3. Determine the net income for April.
4. How much did April's transactions increase or decrease stockholders' equity?
PR 1-2A Financial statements
me:
The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue and
bo0
expenses for the year are as follows:
Obj. 5
Accounts payable
$ 108,000
Miscellaneous expense
Rent expense
$ 19,500
Accounts receivable
539,000
56,000
Cash
200,000
Supplies
Supplies expense
Utilities expense
6,000
PLATE
Common stock
575,000
12,700
Fees earned
940,000
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.
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?
PR 1-3A Financial statements
Seth Feye established Reliance Financial Services on July 1, 20Y2. Reliance Financial Services offers
financial planning advice to its clients. The effect of each transaction and the balances after each
transaction for July follow:
Obj. 5
ome:
1,200
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