The following are the amounts of the assets and liabilities of New World Travel Agency at December 31, 2015, the end of the current year, and its revenue and expenses for the year. The capital of Kris Taber, owner, was $120,000 on January 1, 2015, the beginning of the current year. During the current year, Kris withdrew $10,000.

Instructions
1. Prepare an income statement for the current year ended December 31, 2015.
2. Prepare a statement of owner€™s equity for the current year ended December 31, 2015.
3. Prepare a balance sheet as at December 31, 2015.
4. What item appears on both the income statement and statement of owner€™s equity?

Accounts payable 25,000 Rent expense 45,000 Accounts receivable 60,000 5,000 110,000 Supplies expense 3,000 Utilities expense 18,000 Supplies Cash Fees earned 200,000 Miscellaneous expense 4,000 Wages expense 90,000