Chapter 1, Problem 1.2APR

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. 1. Prepare an income statement for the year ended December 31, 2018.
2. 2. Prepare a retained earnings statement for the year ended December 31, 2018.
3. 3. Prepare a balance sheet as of December 31, 2018.
4. 4. What item appears on both the retained earnings statement and the balance sheet?