The accounting records of LeClaire Delivery Services show the following assets and liabilities as of the end of 2023 and 2022:

During December 2023 the owner, Jess LeClaire, purchased a small office building and moved the business from rented quarters to the new building. The building and the land it occupies cost $112,500. The business paid $60,000 in cash and a note payable was signed for the balance. LeClaire had to invest $17,500 cash in the business to enable it to pay the $60,000. The business earned a profit during 2023, which enabled LeClaire to withdraw $1,500 per month from the business for personal expenses.

Required
1. Prepare balance sheets for the business as of the end of 2022 and the end of 2023.
2. Prepare a calculation to show how much profit was earned by the business during 2023.

Analysis Component:
Assets increased from $138,750 at December 31, 2022, to $235,200 at December 31, 2023. Using numbers wherever possible, explain how these assets were financed.

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Cash Accounts receivable Office supplies Trucks Office equipment Land Building Accounts payable Notes payable December 31 2023 2022 $9,375 $26,250 11,175 14,250 1,650 2,250 27,000 27,000 73,500 69,000 22,500 90,000 18,750 3,750 52,500