Constructing Balance Sheets and Determining Income

Following is balance sheet information for Lynch Services at the end of 2014 and 2015.

	December 31, 2015	December 31, 2014
Accounts Payable	$20,250	$30,375
Cash	77,625	67,500
Accounts Receivable	141,750	111,375
Land	135,000	135,000
Building	843,750	877,500
Equipment	145,125	151,875
Mortgage Payable	303,750	337,500
Supplies	67,500	60,750
Common Stock	742,500	742,500
Retained Earnings	?	?

a. Prepare balance sheets at December 31 of each year.

LYNCH SERVICES BALANCE SHEETS
	December 31
	2015	2014
Assets
Answer

Answer	Answer
Accounts Receivable	Answer	Answer
Supplies	Answer	Answer
Answer

Answer	Answer
Building	Answer	Answer
Equipment	Answer	Answer
Total Assets	Answer	Answer
Liabilities
Answer

Answer	Answer
Mortgage Payable	Answer	Answer
Total Liabilities	Answer	Answer
Stockholders' Equity
Answer

Answer	Answer
Retained Earnings	Answer	Answer
Total Stockholders' Equity	Answer	Answer
Total Liabilities and Stockholders' Equity	Answer	Answer

b. The firm declared and paid a cash dividend of $11,250 in December 2015. Compute its net income for 2015. $Answer