M1-16 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet

The following information was reported in the December 31 financial statements of National Airways, Inc. (listed alphabetically, amounts in millions).

Accounts Payable

$ 4,650

Accounts Receivable

580

Aircraft Fuel Expense

8,700

Cash

2,970

Common Stock

1,220

Dividends

20

Equipment

14,370

Income Tax Expense

260

Interest Expense

$ 130

Landing Fees Expense

3,100

Notes Payable

6,950

Repairs and Maintenance Expense

1,200

Retained Earnings (as of December 31)

5,780

Salaries and Wages Expense

3,280

Supplies

680

Ticket Revenues

17,100

2. Prepare a statement of retained earnings for the year ended December 31 (TIP: Assume the balance in Retained Earnings was $5,370 (million) at January 1).