The amounts of the assets and liabilities of Excalibur Travel Agency at December 31, 20Y5, the end of the year, and its revenue and expenses for the year follow. The capital of James Brewster, owner, was $710,000 on January 1, 20Y5, the beginning of the year. During the year, James withdrew $44,500. Accounts Amounts Accounts payable $ 73,500 Accounts receivable 302,000 Cash 201,900 Fees earned 967,000 Land 576,500 Miscellaneous expense 6,800 Rent expense 38,100 Supplies 5,800 Supplies expense 4,300 Utilities expense 30,200 Wages expense 540,400 Required: 1. Prepare an income statement for the year ended December 31, 20Y5.* 2. Prepare a statement of owner’s equity for the year ended December 31, 20Y5.* 3. Prepare a balance sheet as of December 31, 20Y5.* 4. What item appears on both the statement of owner’s equity and the balance sheet? *Be sure to complete the statement heading. Refer to the information given and the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Labels December 31, 20Y5 Expenses For the Year Ended December 31, 20Y5 Amount Descriptions Decrease in owner’s equity James Brewster, capital James Brewster, capital, December 31, 20Y5 James Brewster, capital, January 1, 20Y5 Increase in owner’s equity Investment on July 1, 20Y5 Net income Net loss Total assets Total expenses Total liabilities and owner’s equity Withdrawals 1. Prepare an income statement for the year ended December 31, 20Y5. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. Excalibur Travel Agency Income Statement (Label) 1 2 3 4 5 6 7 8 9 2. Prepare a statement of owner’s equity for the year ended December 31, 20Y5. Be sure to complete the statement heading. Refer to the information given and the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. If required, use the minus sign to indicate any decreases in equity. Excalibur Travel Agency Statement of Owner’s Equity (Label) 1 2 3 4 5 3. Prepare a balance sheet as of December 31, 20Y5. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. When entering assets, enter them in order of liquidity. Excalibur Travel Agency Balance Sheet (label) 1 Assets 2 3 4 5 6 7 Liabilities 8 9 Owner’s equity 10 11 4. What item appears on both the statement of owner’s equity and the balance sheet? Withdrawals James Brewster, Captial Fees Earned Net Income Cash

The amounts of the assets and liabilities of Excalibur Travel Agency at December 31, 20Y5, the end of the year, and its revenue and expenses for the year follow. The capital of James Brewster, owner, was $710,000 on January 1, 20Y5, the beginning of the year. During the year, James withdrew $44,500. Accounts Amounts Accounts payable $ 73,500 Accounts receivable 302,000 Cash 201,900 Fees earned 967,000 Land 576,500 Miscellaneous expense 6,800 Rent expense 38,100 Supplies 5,800 Supplies expense 4,300 Utilities expense 30,200 Wages expense 540,400 Required: 1. Prepare an income statement for the year ended December 31, 20Y5.* 2. Prepare a statement of owner’s equity for the year ended December 31, 20Y5.* 3. Prepare a balance sheet as of December 31, 20Y5.* 4. What item appears on both the statement of owner’s equity and the balance sheet? *Be sure to complete the statement heading. Refer to the information given and the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Labels December 31, 20Y5 Expenses For the Year Ended December 31, 20Y5 Amount Descriptions Decrease in owner’s equity James Brewster, capital James Brewster, capital, December 31, 20Y5 James Brewster, capital, January 1, 20Y5 Increase in owner’s equity Investment on July 1, 20Y5 Net income Net loss Total assets Total expenses Total liabilities and owner’s equity Withdrawals 1. Prepare an income statement for the year ended December 31, 20Y5. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. Excalibur Travel Agency Income Statement (Label) 1 2 3 4 5 6 7 8 9 2. Prepare a statement of owner’s equity for the year ended December 31, 20Y5. Be sure to complete the statement heading. Refer to the information given and the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. If required, use the minus sign to indicate any decreases in equity. Excalibur Travel Agency Statement of Owner’s Equity (Label) 1 2 3 4 5 3. Prepare a balance sheet as of December 31, 20Y5. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. When entering assets, enter them in order of liquidity. Excalibur Travel Agency Balance Sheet (label) 1 Assets 2 3 4 5 6 7 Liabilities 8 9 Owner’s equity 10 11 4. What item appears on both the statement of owner’s equity and the balance sheet? Withdrawals James Brewster, Captial Fees Earned Net Income Cash

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Accounts	Amounts
Accounts payable	$ 73,500
Accounts receivable	302,000
Cash	201,900
Fees earned	967,000
Land	576,500
Miscellaneous expense	6,800
Rent expense	38,100
Supplies	5,800
Supplies expense	4,300
Utilities expense	30,200
Wages expense	540,400

Required:

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

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

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

What item appears on both the statement of owner’s equity and the balance sheet?

*Be sure to complete the statement heading. Refer to the information given and the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries.

Labels
December 31, 20Y5
Expenses
For the Year Ended December 31, 20Y5
Amount Descriptions
Decrease in owner’s equity
James Brewster, capital
James Brewster, capital, December 31, 20Y5
James Brewster, capital, January 1, 20Y5
Increase in owner’s equity
Investment on July 1, 20Y5
Net income
Net loss
Total assets
Total expenses
Total liabilities and owner’s equity
Withdrawals

1. Prepare an income statement for the year ended December 31, 20Y5. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required.

Excalibur Travel Agency

Income Statement

(Label)

1
2
3
4
5
6
7
8
9

2. Prepare a statement of owner’s equity for the year ended December 31, 20Y5. Be sure to complete the statement heading. Refer to the information given and the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. If required, use the minus sign to indicate any decreases in equity.

Excalibur Travel Agency

Statement of Owner’s Equity

(Label)

1
2
3
4
5

3. Prepare a balance sheet as of December 31, 20Y5. Be sure to complete the statement heading. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. When entering assets, enter them in order of liquidity.

Excalibur Travel Agency

Balance Sheet

(label)

1	Assets
2
3
4
5
6
7	Liabilities
8
9	Owner’s equity
10
11

4. What item appears on both the statement of owner’s equity and the balance sheet?

Withdrawals
James Brewster, Captial
Fees Earned
Net Income
Cash

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