Financial statements OBJ. 5 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. The retained earnings were $600,000 on January 1, 2016, the beginning of the year. During the year, dividends of $42,000 were paid.

Accounts payable $ 69,500 Miscellaneous expense $ 6,400 Accounts receivable 285,000 Rent expense 36,000 Cash 190,500 Supplies 5,500 Common stock 70,000 Supplies expense 4,100 Fees earned 912,500 Utilities expense 28,500 Land 544,000 Wages expense 510,000 Instructions 1. Prepare an income statement for the year ended December 31, 2016.

2. Prepare a retained earnings statement for the year ended December 31, 2016.

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

4. What item appears on both the retained earnings statement and the balance sheet?