Question

Problem 1-6A Calculating and interpreting profit and preparing a balance sheet LO6, 7,8 Help Me SOLVE IT This icon indicates that there is a video tutorial available on Connect to assist you with completing this question 1 CHECK FIGURES: 1. Total assets 2019 = $138,750; Total assets 2020 = $235,200 The accounting records of LeClaire Delivery Services show the following assets and liabilities as of the end 2020 and 2019: December 31 2020 2019 Cash. Accounts receivable.......... Office supplies.......... Trucks Office equipment. Land Building.............. Accounts payable Notes payable $ 9,375 11.175 1,650 27,000 73,500 22,500 90,000 18,750 52,500 $26,250 14,250 2,250 27,000 69,000 3,750 During December 2020 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 profit during 2020, which enabled LeClaire to withdraw $1,500 per month from the business for personal expenses. 38 Required 1. Prepare balance sheets for the business as of the end of 2019 and the end of 2020. 2. Prepare a calculation to show how much profit was earned by the business during 2020. 700 Analysis Component: Assets increased from $138,750 at December 31, 2019, to $235,200 at December 31 2020. Using numbers wherever possible, explain how these assets were financed. Problem 1-7A Missing information LO7 eXcel The following financial statement information is known about five unrelated companies:

can anyone help please.i have done assests.we have liabilities.but im confused to find out owner's equity.please help.

Answer 1

1.

Leclaire Delivery Services
Balance Sheet
December 31, 2019
Assets	Amount	Liabilities	Amount
Cash	$26,250	Accounts payable	$3,750
Accounts receivable	$14,250	Notes payable	-
Office supplies	$2,250	Total Liabilities	$3,750
Office equipment	$69,000	Equity:
Trucks	$27,000	Total equity (balancing fig.)	$135,000
Total Assets	$138,750	Total laibilities & Equity	$138,750
Leclaire Delivery Services
Balance Sheet
December 31, 2020
Assets	Amount	Liabilities	Amount
Cash	$9,375	Accounts payable	$18,750
Accounts receivable	$11,175	Notes payable	$52,500
Office supplies	$1,650	Total Liabilities	$71,250
Office equipment	$73,500	Equity:
Trucks	$27,000
Building	$90,000	Total equity (balancing fig.)	$163,950
Land	$22,500
Total Assets	$235,200	Total laibilities & Equity	$235,200

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2.

Compute Income as follows:

Statement of owners' equity
Equity, December 31, 2019	$135,000
Add: Additional capital	$17,500
Less: Drawings ($1500 × 12)	($18,000)
Add: Net Income (Balancing fig.)	$29,450
Equity, December 31, 2020	$163,950