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22 May, 04:27

Balance Sheet The account balances of Paradise Travel Service for the year ended May 31, 20Y6, follow: Fees earned $705,555 Office expense 162,280 Miscellaneous expense 14,110 Wages expense 338,665 Accounts payable 17,640 Accounts receivable 49,390 Cash 222,485 Common stock 135,000 Land 226,000 Supplies 8,465 Cash dividends of $26,800 were paid during the year. Retained earnings as of June 1, 20Y5, were $190,000. Prepare the balance sheet as of May 31, 20Y6. When entering assets, enter them in order of liquidity. Paradise Travel Service Balance Sheet May 31, 20Y6

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  1. 22 May, 05:05
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    Assets Liabilities

    Current Assets Acount Payable 17,640

    Cash 222,485 Equity

    Account receivable 49,390 Common Stock 135,000

    Supplies 8,465 Retained Earnings 353,700

    Total Current Assets 280,340 Total Equity 488,700

    Land 226,000

    Total Assets 506,340 Toal Liab + SE 506,340

    Explanation:

    RE will be calculate using the accounting equation as is quicker than calculate net income and do the RE statement

    Assets = Liab + Equity

    Where: Equity = Common Stock + RE

    506,340 = 17,640 + 135,000 + RE

    RE = 506,340 - 17,640 - 135,000 = 353,700
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