The assets and liabilities of Leotard Travel Service at February 28, 2008, the end of the current year, and its revenue and expenses for the year are listed below. The capital stock was $80,000 and the retained earnings was $110,000 on March 1, 2007, the beginning of the current year.

Prepare an income statement for the current year ended February 28, 2008.

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Accounts payable Accounts receivable Cash Fees earned Land $ 21,000 Miscellaneous expense 37,750 Office expense 22,700 Supplies 377,000 Wages expense 145,000 $ 6,350 156,650 2,550 225,000