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Following are the amounts of the assets and liabilities of Pedigree Travel Agency at December 31, 2008, the end of the current year, and its revenue and expenses for the year. The capital of Shiann Ott, owner, was $115,000 on January 1, 2008, the beginning of the current year. During the current year, Shiann withdrew $40,000.
Accounts payable
$ 12,500
Rent expense
$25,000
Accounts receivable
42,300
Supplies
2,700
Cash
180,000
Supplies expense
2,800
Fees earned
250,000
Utilities expense
18,200
Miscellaneous expense
1,500
Wages expense
65,000
Instructions
1. Prepare an income statement for the current year ended December 31, 2008.
2. Prepare a statement of owner's equity for the current year ended December 31, 2008.
3. Prepare a balance sheet as of December 31, 2008.
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