Question

Listed below are the account balances for the Thompson Travel Agency on
December 31, 2017, the end of the current year.
The capital of James Thompson, the owner, was $45,000 on January 1, 2017, the
beginning of the current year. During the current year, James withdrew $7,500.
1. Prepare an income statement for the current year ended December 31, 2017.
2. Prepare a statement of owner's equity for the current year ended December 31, 2017.
3. Prepare a balance sheet as of December 31, 2017.
Accounts Payable			$       6,250	Rent Expense		$         12,500
Accounts Receivable			$     21,150	Supplies		$           1,350
Cash			$     90,000	Supplies Expense		$           1,400
Fees Earned			$    125,000	Utilities Expense		$           9,100
Miscellaneous Expense			$          750	Wages Expense		$         32,500

Answer 1

Solution 1:

Thompson Travel Agency
Income Statement
For the year ended December 31, 2017
Particulars	Amount
Revenue:
Fees earned	$125,000.00
Expenses:
Rent expense	$12,500.00
Supplies expense	$1,400.00
Utilities expense	$9,100.00
Wages expense	$32,500.00
Miscellenous expense	$750.00
Total expenses	$56,250.00
Net Income	$68,750.00

Solution 2:

Thompson Travel Agency
Statement of Owner's Equity
For the year ended December 31, 2017
Particulars	Amount
Beginning capital balance	$45,000.00
Add: Net Income	$68,750.00
Less: Withdrawl	$7,500.00
Ending capital balance	$106,250.00

Solution 3:

Thompson Travel Agency
Balance Sheet
As of December 31, 2017
Assets	Amount	Liabilities and Equity	Amount
Cash	$90,000.00	Liabilities:
Accounts receivables	$21,150.00	Accounts payable	$6,250.00
Supplies	$1,350.00	Equity:
		Owner's Capital	$106,250.00
Total Assets	$112,500.00	Total Liabilities and Equity	$112,500.00