The assets and liabilities of Global Travel Agency on Dece expenses for the year are as follows: Accounts payable $ 108,000 Miscellaneon Accounts receivable 539,000 Rent expens Cash Supplies Supplies exp 200,0C0 Common stock 575,000 Fees earned 940,000 Utilities expe Land 1,500,000 Wages expen Common stock was $525,000 and retained earnings was $1,2: the year, additional common stock of $50,000 was issued were paid. Instructions 1. Prepare an income statement for the year ended December 2. Prepare a statement of stockholders' equity for the year en 3. Prepare a balance sheet as of December 31, 20Y5. 4. What items

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Chapter16: Financial Statements And Closing Entries For A Corporation
Section: Chapter Questions
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PR 1-2A only 1-4
LApense
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
The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue and
Obj. 5
me:
D00
expenses for the year are as follows:
PIEI
Accounts payable
$ 108,000
539,000 Rent expense
Miscellaneous expense
$ 19,500
Accounts receivable
56,000
000.21
200,000
575,000
Cash
Supplies
Supplies expense
Utilities expense
6,000
PLATE
Common stock
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
onld
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
come:
1,200
Transcribed Image Text:LApense 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 The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue and Obj. 5 me: D00 expenses for the year are as follows: PIEI Accounts payable $ 108,000 539,000 Rent expense Miscellaneous expense $ 19,500 Accounts receivable 56,000 000.21 200,000 575,000 Cash Supplies Supplies expense Utilities expense 6,000 PLATE Common stock 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 onld 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 come: 1,200
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