1. On May 12, Dream Inc. bought land at a price of $300,000. The initial asking price for the land was $350,000. On August 23, the land was assessed at a value of $235,000 for property tax purposes. On November 8, Dream Inc. was offered $320,000 for the land by a national retail chain. At what value should the land be recorded in Dream Inc. records?

2. Determine the missing amount for each of the following:

Assets = Liabilities + Stockholders Equity

1. 650,000 = X + 200,000
2. 1,400,000 = 825,000 + X
3. X = 214,500 + 87,200

3. Indicate whether each of the following is an asset, liability, or stockholders equity.

1. Cash
2. Building
3. Accounts Payable
4. Wages Expense
5. Accounts Receivable
6. Supplies
7. Supplies Expense
8. Fees Earned
9. Utilities Expense
10. Wages Payable

4. The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2017, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $416,800 on January 1 2017, the beginning of the year. During the year, dividends of $25,000 were paid.

Accounts Payable $57,000 Land 430,000

Cash 240,000 Supplies 15,000

Common Stock 50,000 Supplies Expense 5,800

Fees Earned 875,000 Rent Expense 48,000

Accounts Receivable 145,000 Utilities Expense 39,000

Misc. Expense 1,000 Wages Expense 450,000

Instructions: Prepare an Income Statement, Retained Earnings Statement, and Balance Sheet for 2017. Also, what statement or statements does Net Income appear on.