The assets and liabilities of Leotard Travel Service at February 28, 2008, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner, Harry Thompson, was $190,000 at March 1, 2007, the beginning of the current year.
|
Accounts payable |
$ 21,000 |
Miscellaneous expense |
$ 6,350 |
|
Accounts receivable |
37,750 |
Office expense |
156,650 |
|
Cash |
22,700 |
Supplies |
2,550 |
|
Fees earned |
377,000 |
Wages expense |
225,000 |
|
Land |
145,000 |
|
|
Prepare an income statement for the current year ended February 28, 2008.