Question

LO 1-2, 1-3 M1-16 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions). Accounts Payable Accounts Receivable Aircraft Fuel Expense Cash Common Stock Dividends Equipment Income Tax Expense $ 4,650 580 8,700 2,970 1.220 20 14,370 260 Interest Expense Landing Fees Expense Notes Payable Repairs and Maintenance Expense Retained Earnings (as of December 31, 2017) Salaries and Wages Expense Supplies Ticket Revenues $ 130 3.100 6.950 1,200 5,780 3,280 680 17.100

Answer 1

Income statement for the year ended December 31, 2017
Ticket Revanue		17100
Less: Expenses
Aircraft Fuel Expenses	8700
Dividend	20
Income Tax Expenses	260
Interest Expenses	130
Landing Fees expenses	3100
Repair and Maintenance Expenses	1200
Salary And Wages expenses	3280	16690
Earning		410
Statement of retained earning for the year ended December 31, 2017
Retained earning January 1, 2017			$5,370
Add: Current year earning			410
Total Retained earnings of December 31, 2017			$5780
BALANCE SHEET AS OF AUGUST 31.
ASSETS			AMOUNT ($)	LIABILITIES	AMOUNT ($)
Current Assets				Current Liabilities
Cash			2970	Accounts Payable	4650
Account Receivable			580	Notes Payable	6950
Supplies			680	Total Current Liabilities	11600
Total Current Assets			4230	Stock holders Equity
Non Current Assets				Common Stock	1220
Equipment			14370	Retained Earning	5780
Total Non Current Assets			14370	Total Equity	7000
Total Assets			18600	Total Liabilities & stock holders equity	18600