Viva Travel Service reported assets, liabilities, revenues, and expenses for September 30, 20Y6 below. As of October
Question:
Viva Travel Service reported assets, liabilities, revenues, and expenses for September 30, 20Y6 below. As of October 1, 20Y5, the beginning of the current year, Viva Travel Service reported retained earnings as $61,010, and common stock as $7,500. During the current year, dividends in the amount of $32,900 were paid.
| Accounts payable | $22,060 |
| Accounts receivable | 133,082 |
| Common stock | 15,000 |
| Cash | 238,368 |
| Fees earned | 802,800 |
| Miscellaneous expense | 6,240 |
| Rent expense | 103,960 |
| Supplies | 10,270 |
| Supplies expense | 16,630 |
| Utilities expense | 62,380 |
| Wages expense | 297,040 |
Instructions:
Question Content Area
1. Prepare an income statement for the current year ended September 30, 20Y6.
Accounts receivableCashCommon stockFees earnedWages expenseFees earned | $Fees earned | |
| Operating expenses: | ||
Accounts payableDividendsFees earnedSuppliesWages expenseWages expense | $Wages expense | |
Accounts payableAccounts receivableCommon stockFees earnedRent expenseRent expense | Rent expense | |
Accounts payable as fees earnedSuppliesUtilities expenseUtilities expense | Utilities expense | |
Accounts receivableDividendsFees earnedSupplies expenseSuppliesSupplies expense | Supplies expense | |
Accounts payableAccounts receivableCashCommon stockMiscellaneous expenseMiscellaneous expense | Miscellaneous expense | |
| Total operating expenses | fill in the blank 2bfe79fddf8afcd_13 | |
Net income lost income | $Net income | |
Feedback Area
Feedback
Expenses are subtracted from revenues to determine a company's net income or net loss in the income statement of a company.
Question Content Area
2. Prepare a statement of stockholders' equity for the current year ended September 30, 20Y6. If an amount is zero, enter "0". Enter negative value for dividends.
| blank | Common Stock | Retained Earnings | Total |
| Balances, Oct. 1, 20Y5 | $fill in the blank b47babfd7015f94_1 | $fill in the blank b47babfd7015f94_2 | fill in the blank b47babfd7015f94_3 |
CashDecrease in cash increase in cashIssuance of common stockNet lossIssuance of common stock | Issuance of common stock | Issuance of common stock | Issuance of common stock |
Accounts payableAccounts receivableCashNet income net lost income | Net income | Net income | Net income |
Accounts payableAccounts receivableCashDividendsNet lossDividends | Dividends | Dividends | Dividends |
| Balances, Sept. 30, 20Y6 | $fill in the blank b47babfd7015f94_16 | $fill in the blank b47babfd7015f94_17 | $fill in the blank b47babfd7015f94_18 |
Feedback Area
Feedback
Keep in mind that stockholders' equity increases with additional stock issues and also when the retained earnings balance increases through net income and gains. Stockholders' equity decreases when dividends are declared and paid and also when the retained earnings balance decreases through net losses.
Question Content Area
3. Prepare a balance sheet as of September 30, 20Y6. When entering assets, enter them in order of liquidity.
| Assets | ||
Accounts payableCommon stockCashFees earnedRetained earningsCash | $Cash | |
Accounts payableAccounts receivableCommon stockfeed earnedRetained earnings accounts receivable | Accounts receivable | |
Accounts payableCommon stockfeed earnedRetained earningsSuppliesSupplies | Supplies | |
| Total assets | $fill in the blank 628c07ff3fe3fa6_7 | |
| Liabilities | ||
Accounts payableAccounts receivableCashRetained earnings taxes expense accounts payable | $Accounts payable | |
| Stockholders' Equity | ||
Accounts payableAccounts receivableCommon stockCashSuppliesCommon stock | $Common stock | |
Accounts payableAccounts receivableCashRetained earningsSuppliesRetained earnings | Retained earnings | |
| Total stockholders' equity | ||
| Total liabilities and stockholders' equity | ||
Expert Answer:
1 Prepare the income statement for the current year ended Sep 30 20Y6 Viva Travel Services Income St... View the full answer
