Question - Financial Statements
The following are the amounts of the assets and liabilities of New World Travel Agency at December 31, 2012, the end of the current year, and itsrevenue and expenses for the year. The retained earnings were $54,300 on January 1, 2012, the beginning of the current year. During the current year, dividends of $29,300 were paid.
|
Accounts payable
|
$18,130
|
|
Accounts receivable
|
112,074
|
|
Capital stock
|
15,000
|
|
Cash
|
195,956
|
|
Fees earned
|
714,500
|
|
Miscellaneous expense
|
5,850
|
|
Rent expense
|
97,530
|
|
Supplies
|
8,440
|
|
Supplies expense
|
15,600
|
|
Utilities expense
|
58,520
|
|
Wages expense
|
278,660
|
1. Prepare an income statement for the current year ended December 31, 2012.
2. Prepare a retained earnings statement for the current year ended December 31, 2012.
3. Prepare a balance sheet as of December 31, 2012. When entering assets, enter them in order of liquidity.
4. What item appears on both the retained earnings statement and the balance sheet?