The amounts of the assets and liabilities of Glacier Travel Service as of September 30, 20Y6, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $150,000, and the common stock was $50,000 as of October 1, 20Y5, at the beginning of the current year. Dividends of $10,000 were paid during the current year.

Accounts payable		$175,000
Accounts receivable		321,000
Cash		166,000
Common stock		70,000
Fees earned		900,000
Miscellaneous expense		$37,000
Rent expense		180,000
Supplies		13,000
Supplies expense		38,000
Taxes expense		30,000
Utilities expense		75,000
Wages expense		425,000

Instructions:

1.  Prepare an income statement for the current year ended September 30, 20Y6.

Glacier Travel Service
Income Statement
For the Year Ended September 30, 20Y6
		$
Operating expenses:
	$
Total operating expenses
		$

2.  Prepare a statement of stockholders’ equity for the current year ended September 30, 20Y6. If an amount is zero, enter "0".

Glacier Travel Service
Statement of Stockholders’ Equity
For the Year Ended September 30, 20Y6
	Common Stock	Retained Earnings	Total
Balances, Oct. 1, 20Y5	$	$	$
Balances, Sept. 30, 20Y6	$	$	$

3.  Prepare a balance sheet as of September 30, 20Y6.

Glacier Travel Service
Balance Sheet
September 30, 20Y6
Assets
		$
Total assets		$
Liabilities
		$
Stockholders' Equity
	$
Total liabilities and stockholders' equity		$

Answer rating: 100% (QA)

Glacier Travel Service Income Statement For the Year Ended September 30 20Y6 Fees Earned ... View the full answer