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?