Question

1) The following were taken from the accounting records of Fly By Night Travel, Inc., a travel agency, as of January 31, 2019. On the forms provided, prepare in Income Statement and a Statement of Stockholder’s Equity for the month of January, and a classified Balance Sheet on January 31. Note that $6,000 of the note is due in 2019 and the balance of the note is due in 2020. (51 points) Accounts Payable $6,000 Accounts Receivable 19,000 Accumulated Depreciation – Equipment 15,500 Advertising Expense 4,500 Common Stock 24,500 Cash 19,000 Depreciation Expense 6,000 Dividends 3,500 Equipment 45,000 Fees Earned 68,500 Notes Payable 19,000 Retained Earnings, January 1 13,500 Retained Earnings, January 31 ??? Salary Expense 50,000

Answer 1

1.)	Income Statement	Amount $
	Fees Earned	68,500
	Less: Expenses
	Advertisement Expense	4,500
	Salary Expense	50,000
	Depreciation Expense	6,000
	Total Expenses	60,500
	Net Income	8,000
2.)	Statement of Stockholder’s Equity			Amount $
		Common Stock	Retained earnings	Total
	Balance January 1,2019	24,500	13,500	38,000
	Add: Net Income		8,000	8,000
	Less: Dividends		-3,500	-3,500
	Balance January 31,2019	24,500	18,000	42,500
3.)	Classified Balance Sheet on January 31		Amount $
	Assets
	Current Assets
	Accounts receivable		19,000
	Cash		19,000
	Non-Current Assets
	Equipment	45,000
	Less: Accumulated Depreciation	15,500	29,500
	Total Assets		67,500
	Liabilities & Stockholder's Equity
	Current Liabilities
	Accounts Payable		6,000
	Note Payable		6,000
	Non-Current Liabilities
	Note Payable		13,000
	Stockholder' s Equity
	Common Stock		24,500
	Retained earnings		18,000
	Total Liabilities & Stockholder's Equity		67,500