O 0 Preparing financial statements and evaluating business performance [20-30 min] Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2012. $ 8,000 Owner...

Extracted text: O 0 Preparing financial statements and evaluating business performance [20-30 min] Presented here are the accounts of Gate City Answering Service for the year ended December 31, 2012. $ 8,000 Owner investment, 2012$ 28,000 32,000 Accounts payable 2,600 Accounts receivable 30,000 Advertising expense 13,000 Building Land Note payable 11,000 Property tax expense Wayne, drawing Rent expense Salary expense Salary payable 1,000 15,000 65,000 Cash 1,300 Equipment 192,000 Insurance expense 10,000 Interest expense 145,200 3,000 16,000 2,500 Service revenue Supplies Wayne, capital, 12/31/2011 7,000 54,000 4. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year? c. How much does the company owe to creditors? d. What is the dollar amount of the owner's equity in the business at the end of the year?