Presented here are the amounts of Assets, Liabilities, Shareholders’ Equity, Revenues, and Expenses of The Better Body, Inc. at December 31, 2013. The items are listed in alphabetical order.

Accounts Payable ...........$ 15,000

Accounts Receivable........ 14,000

Advertising Expense........ 13,000

Building .............. 130,000

Cash.............. 16,000

Common Shares ........... 40,000

Dividends ............. 36,000

Equipment ............. 45,000

Insurance Expense........ 1,000

Interest Expense ........... $ 9,000

Land............. 40,000

Note Payable........... 65,000

Property Tax Expense....... 3,000

Rent Expense........... 24,000

Salary Expense ........... 71,000

Salary Payable ........... 2,000

Service Revenue ......... 185,000

Supplies ............. 2,000

The common shares and retained earnings balances of the business were $40,000 and $97,000 respectively at December 31, 2012.

Requirements

1. Identify each amount shown as an asset, liability, or shareholders’ equity.

2. Prepare the company’s income statement and statement of changes in equity for the year ended December 31, 2013.

3. Prepare the company’s statement of financial position at December 31, 2013.

4. Answer these questions about the company:

a. What was the profit or loss for the year?

b. What was the increase or decrease of retained earnings for the year?

c. What is the amount of economic resources on December 31, 2013?

d. What is the amount owed on December 31, 2013?