The amounts of the assets and liabilities of Nordic Travel Agency at December 31

Question

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 $645,000 on January 1, 2019, the beginning of the year. During the year, Ian withdrew $37,000.

Accounts Amounts Accounts payable $73,000 Accounts receivable 277,000 Cash 191,500 Fees earned 918,700 Land 547,000 Miscellaneous expense 6,000 Rent expense 34,000 Supplies 6,000 Supplies expense 4,200 Utilities expense 29,000 Wages expense 505,000

Explanation / Answer

1) Income Statement :-

2) Statement of Owenr's Equity :-

3) Balance Sheet :-

4) The item that appears in both statements is the capital amount of $948500, and also the amount by accounts receivable is the same then the increase in Owner's Equity.

Particulars Amount($) Amount($) Revenue (Fees Earned) (A) 918700 Less : Expenses Rent Expense 34000 Wages Expense 505000 Utilities Expense 29000 Supplies Expense 4000 Miscellaneous Expense 6200 Total Expenses (B) 578200 578200 Net Income (A-B) 340500

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