Question

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 $640,000 on January 1, 2018, the beginning of the year. During the year, dividends of $45,000 were paid. Accounts payable $ 71,000 Accounts receivable 268,000 Cash 191,500 Common stock 70,000 Fees earned 851,000 Land 546,000 Miscellaneous expense 6,700 Rent expense 33,000 Supplies 5,700 Supplies expense 4,100 Utilities expense 27,000 Wages expense 505,000.

2. Prepare a retained earnings statement for the year ended December 31, 2018. Refer to the information given and the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. The word “Less” or “Add” is not needed in the Retained Earnings Statement.

3. Prepare a balance sheet as of December 31, 2018. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Answer 1

Income Statement:
Fees earned			851000
Less: Expenses
Rent expenses		33000
Supplies expenses		4100
Utilities expenses		27000
Wages expenses		505000
Misc expenses		6700
Total expenses			575800
Net Icnome			275200
Retained earnings Statement:
Beginning balance			640000
Add: Net Income			275200
Sub-total			915200
Less: Dividend			45000
Ending retained earnings			870200
Balance Sheet
cash			191500
Accounts receivable			268000
Supplies			5700
Total current assets				465200
Land				546000
Total Assets				1011200
Liabilities and Equity
Accounts payable				71000
Stockholder's equity
Common Stock			70000
Retained earnings			870200
Total Stockholder's equity				940200
Total Liabiltiies and stockholder's equity				1011200