Question

Instructions 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 lan Eisele, owner, was $680,000 on January 1, 2019, the beginning of the year. During the year, lan withdrew $45,000. Accounts Accounts payable Amounts $71,000 Accounts receivable 268,000 Cash 191,500 Fees earned 881,000 Land 546,000 Miscellaneous expense 6,700 Rent expense 33,000 5,700 Supplies Supplies expense 4,100 Utilities expense 27,000 Wages expense 505,000 Required: 1. Prepare an income statement for the year ended December 31, 2019.* 2. Prepare a statement of owner's equally 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

Answer 1

1) we will prepare Income statement this statement shows all the expenses and revenue of the entity and through this net income is calculated.

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Income Statement (for the year ended December 31, 2019) Revenues :- Fees Ewined $881000 $881000 Total Revenues 1$6,500 $33,000 Expenses: - Miscellaneous Expenses Rest Expense Supplies Gripense Utilities Expense Wages Expense Total Expenses 1$ 4,100 $27,000 $505,000 $575800 $305200 Net Income

(2) we will prepare statement of owner's equity which shows changes in owners capital during a year.

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(3)We will prepare Balance sheet which will include all the assets and liabilities of the entity.

3 Balance sheet (as of December 31, 2019) Assets $191,500 $268,000 cash Accounts Receivables 1$ 5,700 Supplies $546,000 Land $1,011,200 Total Assets $71,000 Liabilities & owners Equity Liabilities Accounts Payable Owneud Equite lan Eisele, Capital Total liabilities & Owners Equity 18940,200 $1,011,200

(4 ) Balance of Ian Eisele Capital as on December 31, 2019 , $ 940,200 appears on both Statement of Owner's Equity and Balance sheet.

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