The amounts of theassetsandliabilitiesof Nordic Travel Agency at December 31, 2016, the end of the year, and itsrevenueandexpensesfor 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
Accounts receivable	285,000
Cash	190,500
Common stock	70,000
Fees earned	912,500
Land	544,000
Miscellaneous expense	6,400
Rent expense	36,000
Supplies	5,500
Supplies expense	4,100
Utilities expense	28,500
Wages expense	510,000

Required:
1.	Prepare anincome statementfor the year ended December 31, 2016. Refer to theAccountsgiven in the Instructions and to the lists of 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, enter that amount as a negative number using a minus sign. A colon (:) will automatically appear if it is required.
2.	Prepare aretained earnings statementfor the year ended December 31, 2016. Refer to theAccountsgiven in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Enter all amounts as positive numbers. The word Less or Add is not needed in the Retained Earnings Statement.
3.	Prepare abalance sheetas of December 31, 2016. Refer to theAccountsgiven in the Instructions and to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.
4.	What item appears on both the retained earnings statement and the balance sheet?