Prepare an income statement for the current year

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Reference no: EM13548085

Financial statements

Following are the amounts of the assets and liabilities of Oriental Travel Agency at December 31, 2014, the end of the current year, and its revenue and expenses for the year. The retained earnings was $400,000 on January 1, 2014, the beginning of the current year. During the current year, dividends of $25,000 were paid.

Accounts payable

$ 115,000

Miscellaneous expense

$ 7,000

Accounts receivable

370,000

Rent expense

150,000

Capital stock

50,000

Supplies

20,000

Cash

210,000

Supplies expense

14,000

Fees earned

1,100,000

Utilities expense

79,000

Land

300,000

Wages expense

490,000

Instructions

1. Prepare an income statement for the current year ended December 31, 2014.

2. Prepare a retained earnings statement for the current year ended December 31, 2014.

3. Prepare a balance sheet as of December 31, 2014.

4. What item appears on both the retained earnings statement and the balance sheet?

Reference no: EM13548085

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