Using the information from Problem 4B, prepare an income statement and a statement of changes in equity for the year ended December 31, 2014, and a classified balance sheet at December 31, 2014. The owner made no investments during the year.
Analysis Component:
Dillan's Tailoring Services experienced a net income during 2014. If you were one of the business's creditors, would you conclude that because of this net income Dillan's Tailoring will pay its obligations in 2015?
In Problem 4B

Transcribed Image Text:

No Account Debit Credit 10 Cash.... 125 Store supplies 128Prepaid insurance 167 Equipment 15,500 6,500 3,800 61,000 19,700 39,400 6,400 23,300 201 Accounts payabe 210 Wages payable 30 Vy Dillarn, capital 302 Vy Dillan, withdrawals 401 Sewing fees earned 612 Depreciation expense, equipment... . 623 Wages expense 637 Insurance expense. 640 Rent expense 651 Stoe supplies expense 690 Utilities expense 32,000 109,920 5,400 61,200 2,200 4,800 2,600 3,720 Totals $198,720 $198,720