Financial statements 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...

Financial statements

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.

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?