The amounts of the assets and liabilities of Journey TravelAgency at December 31, 2018, the end of the year, and its revenueand expenses for the year follow. The retained earnings were$615,000 on January 1, 2018, the beginning of the year. During theyear, dividends of $35,000 were paid.

Accounts payable	$73,500
Accounts receivable	288,000
Cash	186,000
Common stock	70,000
Fees earned	875,900
Land	542,000
Miscellaneous expense	6,600
Rent expense	30,000
Supplies	5,100
Supplies expense	4,200
Utilities expense	26,500
Wages expense	511,000

	Required:
1.	Prepare an income statement forthe year ended December 31, 2018. Refer to the lists of Accounts,Labels, and Amount Descriptions provided for the exact wording ofthe answer choices for text entries. Be sure to complete thestatement heading. If a net loss is incurred, enter that amount asa negative number using a minus sign. A colon (:) willautomatically appear if it is required.
2.	Prepare a retained earningsstatement for the year ended December 31, 2018. Refer to theinformation given and the lists of Accounts, Labels, and AmountDescriptions provided for the exact wording of the answer choicesfor text entries. Be sure to complete the statement heading. If anet loss is incurred or dividends were paid, enter that amount as anegative number using a minus sign. The word “Less” or “Add” is notneeded in the Retained Earnings Statement.
3.	Prepare a balance sheet as ofDecember 31, 2018. Refer to the lists of Accounts, Labels, andAmount Descriptions provided for the exact wording of the answerchoices for text entries. Be sure to complete the statementheading.
4.	What item appears on both theretained earnings statement and the balance sheet?