Question

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?


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  • CreatedJuly 08, 2015
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