Week 1 Homework (CH. 1) Income Statement, Statement of stockholders' equity, and Balance Sheet The amounts of the assets and liabilities of Viva Travel Service as of September 30, 2016, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $135,000 and the common stock was $45,000 as of October 1, 2015, the beginning of the current year. Dividends of $9,000 were paid during the year. Accounts payable $157,500 Accounts receivable 208,900 Cash 149,400 Common stock 63,000 Fees earned 810,000 Miscellaneous expense 33,300 Rent expense 162,000 Supplies 11,700 Supplies expense 34,200 x 27,000 Utilities expense 67,500 Wages expense 382,500 Instructions: 1. Prepare an income statement for the current year ended September 30, 2016. Viva Travel Service Income Statement For the Year Ended September 30, 2016 Fees earned Operating expenses: Wages expense Rent expense Utilities expense Supplies expense 382.500 34.399 Taxes expense Miscellaneous expense. Total operating expenses Net income- Feedback Check My Work Expenses are subtracted from revenues to determine a company's net income or net loss in the income statement of a company. 2. Prepare a statement of stockholders' equity for the current year ended September 30, 2016. If an amount is zero, enter "0". Viva Travel Service Statement of Stockholders' Equity For the Year Ended September 30, 2016 Common Stock Retained Earnings Total Balances, Oct. 1, 2015 Issuance of common stock Net income Dividends Balances, Sept. 30, 2016 Feedback Ow My Work 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. 3. Prepare a balance sheet as of September 30, 2016. Viva Travel Service Balance Sheet September 30, 2016 Sash Accounts receivable Supplies: Assets Total assets Liabilities Stockholders' Equity Capital stock Betained sarnings Total abilities and stockholders equity Feedback The balance sheet is a formal presentation of the accounting equation and includes the assets, liabilities, and stockholders' equity accounts. Feedback Check My Work Partly c