Using the information in Problem 8B, prepare an income statement and a statement of changes in equity for the year ended December 31, 2014, and a classified balance sheet at December 31, 2014. The owner made no additional investments during the year. A $2,500 payment on the long-term notes payable will be made during 2015. Also, $1,500 of the notes receivable will be collected by December 31, 2015.
Analysis Component:
Eagle Consulting's equity decreased by $4,610 during 2014. What effect does a decrease in equity have on the other major components of the balance sheet?
In Problem 8B

Account Debit Credit No 201 Accounts payable 168Accumulated depreciation, equipment.. S 720 8,250 3,100 S1,500 101 Cash... 302 Consulting fees earned 194 Copyright 251 Dan Eagle, capital 301 Dan Eagle, withdrawals 406 Depreciation expense, equipment. 45,000 4,200 24,715 3,500 1,000 700 16,000 600 167 Equipment 70 401 623 233 145 183 104 126 637 652 203 688 612 Interest earned Interest expense Long-term notes payable Notes receivable Office furniture Short-term investments Supplies Supplies expen Telephone expense Unearned consulting fees Utilities expense Wages expense Totals 30 4,000 5,000 5,100 4,000 750 2,150 470 375 3,230 38,000 86,230$86,230