Air and Sea Travel Case Study

Air & Sea Travel Inc. Case study

Air & Sea Travel Inc. a travel agency began operations on April 1, 20X6. During April, the business provided travel services for clients. It is now April 30, and investors wonder how well Air & Sea Travel performed during its first month. They also want to know the company’s financial position at the end of April and its cash flows during the month.

The following data is listed in alphabetical order. Prepare the Air & Sea Travel financial statements at end of April 20X6.

|Accounts payable |$100 |Land |$18,000 |
|Accounts receivable |2,000 |Office supplies |500 |
|Adjustments to reconcile net | |Payments of cash: | |
| income to net cash provided | | Acquisition of land |40,000 |
| by operating activities |(2,400) | Dividends |2,100 |
|Cash balance at the beginning of April |0 |Rent expense |1,100 |
|Cash balance at the end of April |33,300 |Retained earnings at the beginning of April | |
| | | |0 |
|Cash receipts: | |Retained earnings at the end of April |? |
| Issuance stock