The amounts of the assets and liabilities of Journey Travel Agency at December 3

ID: 2330900 • Letter: T

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 $615,000 on January 1, 2018, the beginning of the year. During the year, dividends of $35,000 were paid.

Accounts payable $ 73,500 Accounts receivable 288,000 Cash 186,000 Common stock 70,000 Fees earned 875,900 Land 542,000 Miscellaneous expense 6,600 Rent expense 30,000 Supplies 5,100 Supplies expense 4,200 Utilities expense 26,500 Wages expense 511,000

Explanation / Answer

Answer

Income Statement

for the year ended Dec 31, 2018

Revenues:

Fees earned

$ 875,900.00

Expenses:

Rent expense

$ 30,000.00

Supplies expense

$ 4,200.00

Utilities expense

$ 26,500.00

Wages expense

$ 511,000.00

Miscellaneous expense

$ 6,600.00

Total Expenses

$ 578,300.00

Net Income

$ 297,600.00

Statement of Retained Earnings

For the year ended 31 Dec 2018

Beginning Balance

$ 615,000.00

Net Income

$ 297,600.00

Dividends paid

$ (35,000.00)

Ending Balance

$ 877,600.00

Balance Sheet

31-Dec-18

ASSETS

Cash

$ 186,000.00

Accounts receivable

$ 288,000.00

Supplies

$ 5,100.00

Total Current Assets

$ 479,100.00

Land

$ 542,000.00

Total Assets

$ 1,021,100.00

LIABILITIES

Accounts payable

$ 73,500.00

Total Liabilities

$ 73,500.00

STOCKHOLDER's EQUITY

Common Stock

$ 70,000.00

Retained Earnings - Ending Balance

$ 877,600.00

Total Stockholder's Equity

$ 947,600.00

Total Liabilities & Stockholder's Equity