The amounts of the assets and liabilities of Journey Travel Agency at December 31, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $1,341,000 on January 1, 2018, the beginning of the year. During the year, dividends of $75,000 were paid.

Accounts payable	$ 69,500
Accounts receivable	236,500
Cash	190,500
Common stock	450,000
Fees earned	383,500
Land	1,500,000
Miscellaneous expense	14,500
Rent expense	22,500
Supplies	7,000
Supplies expense	11,300
Utilities expense	16,700
Wages expense	170,000

	Required:
1.	Prepare an income statement for the year ended December 31, 2018. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.
2.	Prepare a retained earnings statement for the year ended December 31, 2018. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. The word Less or Add is not needed in the Retained Earnings Statement.
3.	Prepare a balance sheet as of December 31, 2018. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.
4.	What item appears on both the retained earnings statement and the balance sheet?

Labels and Amount Descriptions

Labels
December 31, 2018
Expenses
For the Year Ended December 31, 2018
Amount Descriptions
Change in retained earnings
Dividends
Net income
Net loss
Retained earnings
Retained earnings, December 31, 2018
Retained earnings, January 1, 2018
Total assets
Total expenses
Total liabilities and stockholders equity
Total stockholders equity

Income Statement

1. Prepare an income statement for the year ended December 31, 2018. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.

Journey Travel Agency

Income Statement

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Retained Earnings Statement

2. Prepare a retained earnings statement for the year ended December 31, 2018. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. The word Less or Add is not needed in the Retained Earnings Statement.

Journey Travel Agency

Retained Earnings Statement

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Balance Sheet

3. Prepare a balance sheet as of December 31, 2018. Refer to the Accounts given in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

Journey Travel Agency

Balance Sheet

1	Assets
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7	Liabilities
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9	Stockholders Equity
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Final Question

4. What item appears on both the retained earnings statement and the balance sheet?