Financial statementsThe 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 capitalof Ian Eisele, owner, was $670,000 on January 1, 2019, the beginning of the year.During the year, fan withdrew $42,000.Chapter 1 Introduction to Accounting and BusinessAccounts payable $69,500Accounts receivable 285,000Cash 190,500Fees earned 912,500Land 544,000Miscellaneous expense 6,400Rent expense $36,000Supplies 5,500Supplies 4,100Utilities expenses 28,500Wages expense 510,000Instructions1. 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?

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter1: Introduction To Accounting And Business
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Financial statements
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 $670,000 on January 1, 2019, the beginning of the year.
During the year, fan withdrew $42,000.
Chapter 1 Introduction to Accounting and Business
Accounts payable $69,500
Accounts receivable 285,000
Cash 190,500
Fees earned 912,500
Land 544,000
Miscellaneous expense 6,400
Rent expense $36,000
Supplies 5,500
Supplies 4,100
Utilities expenses 28,500
Wages expense 510,000
Instructions
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?

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