Following are the amounts of the assets and liabilities of Pedigree Travel Agency at December 31, 2008, the end of the current year, and its revenue and expenses for the year. The capital of Shiann Ott, owner, was $115,000 on January 1, 2008, the beginning of the current year. During the current year, Shiann withdrew $40,000.
|
Accounts payable
|
$ 12,500
|
Rent expense
|
$25,000
|
|
Accounts receivable
|
42,300
|
Supplies
|
2,700
|
|
Cash
|
180,000
|
Supplies expense
|
2,800
|
|
Fees earned
|
250,000
|
Utilities expense
|
18,200
|
|
Miscellaneous expense
|
1,500
|
Wages expense
|
65,000
|
Instructions
1. Prepare an income statement for the current year ended December 31, 2008.
2. Prepare a statement of owner's equity for the current year ended December 31, 2008.
3. Prepare a balance sheet as of December 31, 2008.