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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 $45,000.

Accounts

Amounts

At Jan. 1, 2016:

Ian Eisele, capital

$680,000

At Dec. 31, 2016:

Accounts payable

$71,000

Accounts receivable

268,000

Cash

191,500

Fees earned

881,000

Land

546,000

Miscellaneous expense

6,700

Rent expense

33,000

Supplies

5,700

Supplies expense

4,100

Utilities expense

27,000

Wages expense

505,000

Required:

Prepare an income statement for the year ended December 31, 2016.*

Prepare a statement of owner’s equity for the year ended December 31, 2016.*

Prepare a balance sheet as of December 31, 2016.*

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.

Labels
December 31, 2016
Expenses
For the Year Ended December 31, 2016
Amount Descriptions
Decrease in owner’s equity
Ian Eisele, capital, December 31, 2016
Ian Eisele, capital, January 1, 2016
Increase in owner’s equity
Investment on July 1, 2016
Less withdrawals
Net income
Net income for the year
Net loss
Net loss for the year
Plus withdrawals
Total assets
Total expenses
Total liabilities and owner’s equity