The amounts of (a) the assets and liabilities of Harada Office Cleaning as of December 31, 2017, and (b) the revenues and expenses of the company for the year ended on December 31, 2017, appear below. The items are listed in alphabetical order.

The beginning amount of owner's equity was $200,000. During the year, the owner, Yoshi
Harada, withdrew $71,000.
Required
1. Prepare the income statement of Harada Office Cleaning for the year ended December 31, 2017.
2. Prepare the statement of owner's equity of the business for the year ended December 31, 2017.
3. Prepare the balance sheet of the business at December 31, 2017.
4. Answer these questions about Harada Office Cleaning:
a. Was the result of operations for the year a profit or a loss? How much was it?
b. Did the business's owner's equity increase or decrease during the year? How would this affect the business's ability to borrow money from a bank in the future?
c. How much in total economic resources does the company have at December 31, 2017, as it moves into the New Year? How much does the company owe? What is the dollar amount of the owner's portion of the business at December 31, 2017?

Transcribed Image Text:

Accounts Payabl. 40,000 Land 50,000 Property Tax Expense 10,000 Salary Expense eivable 50,000 Notes Payable Biking Cash 10,000 30,000 Furniture Interest Expense Interest Payabl. 18,000 14,000 3,000 Supplies Utilities Expens. 10,000 25,000