The amounts of the assets and liabilities of Journey Travel Agency at December 31, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $625,000 on January 1, 2018, the beginning of the year. During the year, dividends of $41,000 were paid.Accounts payable $ 68,500Accounts receivable 274,000Cash 187,500Common stock 70,000Fees earned 869,200Land 544,000Miscellaneous expense 6,500Rent expense 40,000Supplies 5,300Supplies expense 4,400Utilities expense 27,000Wages expense 503,000Required:1. Prepare an income statement for the year ended December 31, 2018. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.2. Prepare a retained earnings statement for the year ended December 31, 2018. Refer to the information given and the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. The word "Less" or "Add" is not needed in the Retained Earnings Statement.3. Prepare a balance sheet as of December 31, 2018. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.4. What item appears on both the retained earnings statement and the balance sheet?

The Income Statement calculates the net income or loss during a particular period by showing the net between the company’s revenues and expenses. It´s also known as the profit and loss statement or the statement of revenue and expense.

The Statement of Retained Earnings calculates the final balance of retained earnings by adding or subtracting net income or loss, calculated in the Income Statement, and subtracting dividend payments to the beginning balance of retained earnings account

The Balance Sheet is the financial statement that shows the financial position of a company by listing the assets, liabilities and stockholders´ equity at a particular point in time. The stockholders' equity adds the investment made by stockholders and retained earnings, which is calculated in the Statement of Retained Earnings.