Following Is a List of Financial Statement Items and Amounts

question 221

Essay

Following is a list of financial statement items and amounts for Vantage Service as of 12/31/Year 1,the end of its first year in operation.
$\begin{array}{lr}\text { Accounts Receivable } & 40,000 \\\text { Accounts Payable } & 30,000 \\\text { Cash } & 10,000 \\\text { Common Stock } & 20,000 \\\text { Notes Payable } & 20,000 \\\text { Equipment } & 50,000 \\\text { Sales Revenue } & 100,000 \\\text { Fuel Expense } & 15,000 \\\text { Rent Expense } & 20,000 \\\text { Advertising Expense } & 5,000 \\\text { Salaries and Wages Expense } & 20,000 \\\text { Retained Earnings } & ? \\\text { Dividends } & 10,000\end{array}$ Required:
Prepare the Income Statement for the year ended December 31,Year 1.
Prepare the statement of retained earnings for the year ended December 31,Year 1.
Prepare the balance sheet for the year ended December 31,Year 1.

---

Definitions:

Closing Journal Entries

At the close of an accounting cycle, transactions are documented to move balances from provisional to fixed accounts.

Ticket Revenue

The income generated from the sale of tickets for events like concerts, movies, or transportation services.

Advertising Expense

The cost incurred to promote products or services to potential customers.

Closing Entries

Accounting journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.