Following are the amounts of the assets and liabilities of Fly Away Travel Agency at December 31, 2004, the end of the current year, and its revenue and expenses for the year.
The retained earnings were $4,500 and the capital stock was $10,000 on January 1, 2004, the beginning of the current year. During the current year, dividends of $30,000 were paid.
|
Accounts payable |
$ 3,200 |
|
Accounts receivable |
19,500 |
|
Cash |
7,200 |
|
Fees earned |
117,480 |
|
Miscellaneous expense |
1,750 |
|
Rent expense |
27,000 |
|
Prepaid expenses |
1,865 |
|
Utilities expense |
12,365 |
|
Wages expense |
35,500 |
Instructions
1. Prepare an income statement for the current year ended December 31, 2004.
2. Prepare a retained earnings statement for the current year ended December 31, 2004.
3. Prepare a balance sheet as of December 31, 2004.