Financial statements The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2016, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $600,000 on January 1, 2016, the beginning of the year. During the year, dividends of $42,000 were paid. Accounts payable $ 69,500 Miscellaneous expense $ 6,400 Accounts receivable 285,000 Rent expense 36,000 Cash 190,500 Supplies 5,500 Common stock 70,000 Supplies expense 4,100 Fees earned 912,500 Utilities expense 28,500 Land 544,000 Wages expense 510,000 Instructions 1. Prepare an income statement for the year ended December 31, 2016. 2. Prepare a retained earnings statement for the year ended December 31, 2016. 3. Prepare a balance sheet as of December 31, 2016. 4. What item appears on both the retained earnings statement and the balance sheet?

BuyFind

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307
BuyFind

Financial & Managerial Accounting

13th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285866307

Solutions

Chapter
Section
Chapter 1, Problem 1.2APR
Textbook Problem

Financial statements

The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2016, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $600,000 on January 1, 2016, the beginning of the year. During the year, dividends of $42,000 were paid.

Accounts payable $ 69,500 Miscellaneous expense $ 6,400
Accounts receivable 285,000 Rent expense 36,000
Cash 190,500 Supplies 5,500
Common stock 70,000 Supplies expense 4,100
Fees earned 912,500 Utilities expense 28,500
Land 544,000 Wages expense 510,000

Instructions

  1. 1. Prepare an income statement for the year ended December 31, 2016.
  2. 2. Prepare a retained earnings statement for the year ended December 31, 2016.
  3. 3. Prepare a balance sheet as of December 31, 2016.
  4. 4. What item appears on both the retained earnings statement and the balance sheet?

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 1 Solutions

Financial & Managerial Accounting
Ch. 1 - Cost concept On February 22, Kountry Repair...Ch. 1 - Cost concept On March 31, Higgins Repair Service...Ch. 1 - Accounting equation Dream-It LLC is a motivational...Ch. 1 - Accounting equation Be-The-One in a motivational...Ch. 1 - Transactions Arrowhead Delivery Service is owned...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Retained Earnings Statement Using the income...Ch. 1 - Retained earnings statement Using the income...Ch. 1 - Balance sheet Using the following data for Ousel...Ch. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Ratio of liabilities to stockholders' equity The...Ch. 1 - Ratio of liabilities to stockholders' equity The...Ch. 1 - Types of businesses The following is a list of...Ch. 1 - Professional ethics A fertilizer manufacturing...Ch. 1 - Business entity assumption Ozark Sports sells...Ch. 1 - Accounting equation The total assets and total...Ch. 1 - Accounting equation The total assets and total...Ch. 1 - Accounting equation Determine the missing amount...Ch. 1 - Accounting equation Go44 is a motivational...Ch. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Effect of transactions on stockholders equity...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders' equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items From the following list of...Ch. 1 - Retained earnings statement Financial information...Ch. 1 - Income statement Dairy Services was organized on...Ch. 1 - Missing amounts from balance sheet and income...Ch. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Financial statements We-Sell Realty, organized...Ch. 1 - Ratio of liabilities to stockholders' equity The...Ch. 1 - Ratio of liabilities to stockholders' equity...Ch. 1 - Transactions On April 1 of the current year,...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On July 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Transactions; financial statements On April 1,...Ch. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Ethics and professional conduct in business Group...Ch. 1 - Net income On January 1, 2015, Dr. Marcie Cousins...Ch. 1 - Transactions and financial statements Lisa Duncan,...Ch. 1 - Financial analysis The now defunct Enron...

Additional Business Textbook Solutions

Find more solutions based on key concepts
REQUIRED LUMP SUM PAYMENT Starting next year, you will need 10,000 annually for 4 years to complete your educat...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)