Constructing Balance Sheets and Determining Income Following is balance sheet information for Lynch Services at the end of 2012 and 2013.

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.

	December 31
	2013	2012
Assets
AnswerLandCommon StockAccounts PayableCash	$Answer	$Answer
Accounts Receivable	Answer	Answer
Supplies	Answer	Answer
AnswerLandCommon StockAccounts PayableCash	Answer	Answer
Building	Answer	Answer
Equipment	Answer	Answer
Total Assets	$Answer	$Answer
Liabilities
AnswerLandCommon StockAccounts PayableCash	$Answer	$Answer
Mortgage Payable	Answer	Answer
Total Liabilities	Answer	Answer
Stockholders' Equity
AnswerLandCommon StockAccounts PayableCash	Answer	Answer
Retained Earnings	Answer	Answer
Total Stockholders' Equity	Answer	Answer
Total Liabilities and Stockholders' Equity	$Answer	$Answer

The firm declared and paid a cash dividend of $11,250 in December 2013. Compute its net income for 2013. $Answer