The accounting records of I.eClaire Delivery Services show the following assets and liabilities as of the end of 2014 and 2013:

During December 2014, 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 net income during 2014, 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 2013 and the end of 2014.
2. Prepare a calculation to show how much net income was earned by the business during 2014.
Analysis Component: Assets increased from $138,750 at December 31, 2013, to $235,200 at December 31, 2014. Using numbers wherever possible, explain how these assets were financed.

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December 31 2014 2013 Cash.. . S 9,375 $26,250 ,5 14,250 1,650 2,250 27,000 27,000 73,500 69,000 Land . . 22,500 buiding90,000 Notes payable .. 8 ...52,500