Following are the amounts of the assets and liabilities of New World Travel Agency at December 31, 2012, the end of the current year, and its revenue and expenses for the year. The retained earnings was $105,000 on January 1, 2012, the beginning of the current year. During the current year, dividends of $10,000 were paid. Accounts Payable $25,000 Rent Expense $46,000 Accounts Receivable 60,000 Supplies 5,000 Capital Stock 15,000 Supplies Expense 3,000 Cash 110,000 Utilities Expense 18,000 Fees Earned 200,000 Wages Expense 90,000 Miscellaneous Expense 4,000 1. Prepare an income statement for the current year ended December 31, 2012. 2. Prepare a retained earnings statement for the current year ended December 31, 2012. 3. Prepare a balance sheet as of December 31, 2012. When entering assets, enter them in order of liquidity. 4. What item appears on both the retained earnings statement and the balance sheet? Answers- I have the answers. Please check them and put them in the template file I attached Revenue: Fees Earned 200,000 Total Revenue 200,000 Expenses: Rent Expense 46,000 Wages Expense 90,000 Utilities Expense 18,000 Supplies Expense 3,000 Miscellaneous Expense 4,000 Total Expenses 161,000 Net Income (Loss) 39,000 New World Travel Agency Balance Sheet December 31, 2012 Assets: Cash 110,000 Supplies 5,000 Accounts Receivable 60,000 Total Assets: 175,000 Liabilities: Accounts Payable 25,000 Total Liabilities 25,000 Equity Capital Stock 15,000 Retained Earnings 134,000 Total Equity 149,000 New World Travel Agency Statement of Retained Earnings For the Year Ending December 31, 2012 Retained earnings ? January 1, 2012 105,000 Plus: Net Income (Loss) 39,000 Less: Dividends 10,000 Retained Earnings ? December 31, 2012 134,000

Problem 1-2A Name: Section: Score: 0% Key Code: [Key code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. An asterisk (*) will appear to the right of an incorrect entry. 1. NEW WORLD TRAVEL AGENCY Income Statement Expenses: Total expenses Net income 2. NEW WORLD TRAVEL AGENCY Retained Earnings Statement Retained earnings, January 1, 2012 Retained earnings, December 31, 2012 3. NEW WORLD TRAVEL AGENCY Balance Sheet Assets Liabilities Stockholders' Equity Total assets 4. Total stockholders' equity Total liabilities and stockholders' equity