The amounts of the assets and liabilities of Nordic TravelAgency at December 31, 2019, the end of the year, and its revenueand expenses for the year follow. The capital of Ian Eisele, owner,was $645,000 on January 1, 2019, the beginning of the year. Duringthe year, Ian withdrew $37,000.
| Accounts | Amounts |
|---|
| Accounts payable | $73,000 |
| Accounts receivable | 277,000 |
| Cash | 191,500 |
| Fees earned | 918,700 |
| Land | 547,000 |
| Miscellaneous expense | 6,000 |
| Rent expense | 34,000 |
| Supplies | 6,000 |
| Supplies expense | 4,200 |
| Utilities expense | 29,000 |
| Wages expense | 505,000 |
| Required: |
| 1. | Prepare an income statement forthe year ended December 31, 2019.* |
| 2. | Prepare a statement of owner’sequity for the year ended December 31, 2019.* |
| 3. | Prepare a balance sheet as ofDecember 31, 2019.* |
| 4. | What item appears on both thestatement of owner’s equity and the balance sheet? | * Refer to the informationgiven and the lists of Accounts, Labels, and Amount Descriptionsprovided for the exact wording of the answer choices for textentries. Be sure to complete the statement heading. If a net lossis incurred or there is a decrease in owner’s equity, enter thatamount as a negative number using a minus sign. |
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