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. During the year, Ian withdrew $42,000. Accounts Amounts At Jan. 1, 2016: Ian Eisele, capital $670,000 At Dec. 31, 2016: 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 expense 4,100 Utilities expense 28,500 Wages expense 510,000
Required:
1. Prepare an income statement for the year ended December 31, 2016.*
2. Prepare a statement of owner’s equity for the year ended December 31, 2016.*
3. Prepare a balance sheet as of December 31, 2016.* 4. What item appears on both the statement of owner’s equity and the balance sheet?