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 $650,000 on January 1, 2019, the beginning of the year. Duringthe year, Ian withdrew $36,000.
Accounts | Amounts |
| Accounts payable | $68,000 |
| Accounts receivable | 267,000 |
| Cash | 183,000 |
| Fees earned | 897,600 |
| Land | 544,000 |
| Miscellaneous expense | 6,200 |
| Rent expense | 35,000 |
| Supplies | 5,200 |
| Supplies expense | 4,200 |
| Utilities expense | 27,000 |
| Wages expense | 508,000 |
| Required: |
| 1. | Prepare an income statement for the year ended December 31,2019.* |
| 2. | Prepare a statement of owner’s equity for the year endedDecember 31, 2019.* |
| 3. | Prepare a balance sheet as of December 31, 2019.* |
| 4. | What item appears on both the statement of owner’s equity andthe balance sheet? | * Refer to the information given and 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 or there is a decreasein owner’s equity, enter that amount as a negative number using aminus sign. |
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