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

ID: 2533308 • Letter: T

Question

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 $37,000.

Accounts Amounts At Jan. 1, 2016: Ian Eisele, capital $645,000 At Dec. 31, 2016: 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

Answers

Revenues:

Fees earned

$                 9,18,700.00

Expenses:

Miscellaneous expense

$                       6,000.00

Rent expense

$                     34,000.00

Supplies

$                       6,000.00

Supplies expense

$                       4,200.00

Utilities expense

$                     29,000.00

Wages expense

$                 5,05,000.00

Total expenses

$                 5,84,200.00

Net Income

$                3,34,500.00

Beginning Balance Jan 1 ,2016

$                 6,45,000.00

Add: Net Income 2016

$                 3,34,500.00

$                 9,79,500.00

Less: Drawings during 2016

$                     37,000.00

Ending Balance 31 Dec 2016

$                 9,42,500.00

Assets:

Current Assets:

Accounts receivable

$               2,77,000.00

Cash

$               1,91,500.00

$                            4,68,500.00

PPE:

Land

$                            5,47,000.00

Total ASSETS

$                          10,15,500.00

Liabilities & Equity

Liabilities:

Accounts payable

$                                73,000.00

Owner's Equity

$                            9,42,500.00

Total Liabilities & Equity

$                          10,15,500.00

* Requirement 4

The item that appears on both 'Statement of Owner's Equity' and 'Balance Sheet' is the Ending Capital Balance of $ 942,500

Revenues:

Fees earned

$                 9,18,700.00

Expenses:

Miscellaneous expense

$                       6,000.00

Rent expense

$                     34,000.00

Supplies

$                       6,000.00

Supplies expense

$                       4,200.00

Utilities expense

$                     29,000.00

Wages expense

$                 5,05,000.00

Total expenses

$                 5,84,200.00

Net Income

$                3,34,500.00

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