Question: Following are the amounts of the assets and liabilities of Greco Travel Agency at December 31, 2006, the end of the current year, and its revenue and expenses for the year. The retained earnings were $8,700, and the capital stock was $7,500 on January 1, 2006, the beginning of the current year. During the current year, dividends of $47,000 were paid.
Accounts payable $ 5,120 Rent expense $36,000
Accounts receivable 31,200 Supplies 3,000
Cash 11,520 Supplies expense 4,500
Fees earned 188,000 Utilities expense 16,500
Miscellaneous expense 2,800 Wages expense 56,800
Instructions: 1. Prepare an income statement for the current year ended December 31, 2006.
2. Prepare a retained earnings statement for the current year ended December 31, 2006.
3. Prepare a balance sheet as of December 31, 2006.