The amounts of the assets and liabilities of Excalibur Travel Agency at December 31, 20Y5, the end of the year, and its revenue and expenses for the year follow. The capital of James Brewster, owner, was $710,000 on January 1, 20Y5, the beginning of the year. During the year, James withdrew $44,500.

Instructions
1. Prepare an income statement for the year ended December 31, 20Y5.

2. Prepare a statement of owner’s equity for the year ended December 31, 20Y5.

3. Prepare a balance sheet as of December 31, 20Y5.

4. What item appears on both the statement of owner’s equity and the balance sheet?

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$ 73,500 302,000 201,900 967,000 Accounts payable Accounts receivable $ 38,100 5,800 Rent expense Supplies Supplies expense Utilities expense Cash 4,300 30,200 540,400 Fees earned Land Wages expense 576,500 6,800 Miscellaneous expense