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.

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 balancesheet?

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Accounts payable Accounts receivable Capital stock Cash Fees earned Land 115,000 370,000 50,000 210,000 Miscellaneous expense 7,000 Rent expense Supplies Supplies expense 150,000 20,000 14,000 79,000 490,000 1,100 000 s expense 300,000 Wages expense