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 payable $ 108,000 Accounts receivable 539,000 Cash 200,00 Common stock 575,000 Fees earned 940,000 940,000 Land 1,500,000 Miscellaneous expense $ 19,500 Rent expense 56,000 Supplies 6,000 Supplies expense 12,700 Utilities expense 34,800 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.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. 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?

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 $ 108,000
Accounts receivable 539,000
Cash 200,00
Common stock 575,000

Fees earned 940,000

940,000
Land 1,500,000
Miscellaneous expense $ 19,500
Rent expense 56,000
Supplies 6,000
Supplies expense 12,700
Utilities expense 34,800
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?

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