Viva Travel Service reported assets, liabilities, revenues, and expenses for September 30, 20Y6 below. As of October 1, 20Y5, the beginning of the current year, Viva Travel Service reported retained earnings as $61,010, and common stock as $7,500. During the current year, dividends in the amount of $32,900 were paid.

Accounts payable	$22,060
Accounts receivable	133,082
Common stock	15,000
Cash	238,368
Fees earned	802,800
Miscellaneous expense	6,240
Rent expense	103,960
Supplies	10,270
Supplies expense	16,630
Utilities expense	62,380
Wages expense	297,040

Instructions:

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1. Prepare an income statement for the current year ended September 30, 20Y6.

Viva Travel Service
Income Statement
For the Year Ended September 30, 20Y6

Accounts receivableCashCommon stockFees earnedWages expenseFees earned		$Fees earned
Operating expenses:
Accounts payableDividendsFees earnedSuppliesWages expenseWages expense	$Wages expense
Accounts payableAccounts receivableCommon stockFees earnedRent expenseRent expense	Rent expense
Accounts payable as fees earnedSuppliesUtilities expenseUtilities expense	Utilities expense
Accounts receivableDividendsFees earnedSupplies expenseSuppliesSupplies expense	Supplies expense
Accounts payableAccounts receivableCashCommon stockMiscellaneous expenseMiscellaneous expense	Miscellaneous expense
Total operating expenses		fill in the blank 2bfe79fddf8afcd_13
Net income lost income		$Net income

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Expenses are subtracted from revenues to determine a company's net income or net loss in the income statement of a company.

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2. Prepare a statement of stockholders' equity for the current year ended September 30, 20Y6. If an amount is zero, enter "0". Enter negative value for dividends.

Viva Travel Service
Statement of Stockholders' Equity
For the Year Ended September 30, 20Y6

blank	Common Stock	Retained Earnings	Total
Balances, Oct. 1, 20Y5	$fill in the blank b47babfd7015f94_1	$fill in the blank b47babfd7015f94_2	fill in the blank b47babfd7015f94_3
CashDecrease in cash increase in cashIssuance of common stockNet lossIssuance of common stock	Issuance of common stock	Issuance of common stock	Issuance of common stock
Accounts payableAccounts receivableCashNet income net lost income	Net income	Net income	Net income
Accounts payableAccounts receivableCashDividendsNet lossDividends	Dividends	Dividends	Dividends
Balances, Sept. 30, 20Y6	$fill in the blank b47babfd7015f94_16	$fill in the blank b47babfd7015f94_17	$fill in the blank b47babfd7015f94_18

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Keep in mind that stockholders' equity increases with additional stock issues and also when the retained earnings balance increases through net income and gains. Stockholders' equity decreases when dividends are declared and paid and also when the retained earnings balance decreases through net losses.

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3. Prepare a balance sheet as of September 30, 20Y6. When entering assets, enter them in order of liquidity.

Viva Travel Service
Balance Sheet
September 30, 20Y6

Assets
Accounts payableCommon stockCashFees earnedRetained earningsCash		$Cash
Accounts payableAccounts receivableCommon stockfeed earnedRetained earnings accounts receivable		Accounts receivable
Accounts payableCommon stockfeed earnedRetained earningsSuppliesSupplies		Supplies
Total assets		$fill in the blank 628c07ff3fe3fa6_7
Liabilities
Accounts payableAccounts receivableCashRetained earnings taxes expense accounts payable		$Accounts payable
Stockholders' Equity
Accounts payableAccounts receivableCommon stockCashSuppliesCommon stock	$Common stock
Accounts payableAccounts receivableCashRetained earningsSuppliesRetained earnings	Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity