The amounts of (a) The assets and liabilities of Harada Office Cleaning as of December 31, 2014, (b) The revenues and expenses of the company for the year ended on December 31, 2014, appear on the next page. The items are listed in alphabetical order.

The beginning amount of owner's equity was $200,000. During the year, the owner, Yoshi Harada, withdrew $71,000.
Required
1. Prepare the income statement of Harada Office Cleaning for the year ended December 31, 2014.
2. Prepare the statement of owner's equity of the business for the year ended December 31, 2014.
3. Prepare the balance sheet of the business at December 31, 2014.
4. Answer these questions about Harada Office Cleaning.
a. Was the result of operations for the year a profit or a loss? How much was it?
b. Did the business's owner's equity increase or decrease during the year? How would this affect the business's ability to borrow money from a bank in the future?
c. How much in total economic resources does the company have at December 31, 2014, as it moves into the New Year? How much does the company owe? What is the dollar amount of the owner's portion of the business at December 31, 2014?

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Accounts Payable Accounts Receivable.. . $ 40,000 50,000 350,000 Land ........ $100,000 200,000 10,000 30,000 280,000 650,000 10,000 25,000 Notes Payable.. Property Tax Expense.. Repairs Expense. Salary Expense. Service Revenue. Supplies. Utilities Expense. Building. Cash... Equipment.. Furniture.. 25,000 110,000 18,000 Interest Expense Interest Payable. 14,000 3,000