The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2019, the end of the year, and its revenue and expenses for the year follow. The capital of Ian Eisele, owner, was $680,000 on January 1, 2019, the beginning of the year. During the year, Ian withdrew $38,000. Accounts Amounts Accounts payable $72,000 Accounts receivable 265,000 Cash 188,000 Fees earned 863,000 Land 547,000 Miscellaneous expense 6,000 Rent expense 33,000 Supplies 5,300 Supplies expense 4,200 Utilities expense 27,500 Wages expense 501,000     Required: 1. Prepare an income statement for the year ended December 31, 2019.* 2. Prepare a statement of owner’s equity for the year ended December 31, 2019.* 3. Prepare a balance sheet as of December 31, 2019.* 4. What item appears on both the statement of owner’s equity and the balance sheet?   * 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 there is a decrease in owner’s equity, enter that amount as a negative number using a minus sign.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2019, the end of the year, and its revenue and expenses for the year follow. The capital of Ian Eisele, owner, was $680,000 on January 1, 2019, the beginning of the year. During the year, Ian withdrew $38,000.
Accounts
Amounts
Accounts payable $72,000
Accounts receivable 265,000
Cash 188,000
Fees earned 863,000
Land 547,000
Miscellaneous expense 6,000
Rent expense 33,000
Supplies 5,300
Supplies expense 4,200
Utilities expense 27,500
Wages expense 501,000
 
  Required:
1. Prepare an income statement for the year ended December 31, 2019.*
2. Prepare a statement of owner’s equity for the year ended December 31, 2019.*
3. Prepare a balance sheet as of December 31, 2019.*
4. What item appears on both the statement of owner’s equity and the balance sheet?
  * 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 there is a decrease in owner’s equity, enter that amount as a negative number using a minus sign.
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