P1-66B. (Learning Objectives 4, 5: Preparing an Income Statement, a Statement of Changes in Equity, and a Balance Sheet; using accounting information to make decisions) The assets and liabilities of Post Shrub as of December 31, 20X6, and revenues and expenses for the year ended on that date follow.

Beginning retained earnings were €116,500, and dividends totaled €46,100 for the year.
Requirements 1. Prepare the Income Statement of Post Shrub, Inc., for the year ended December 31, 20X6.
2. Prepare the company’s statement of changes in equity for the year.
3. Prepare the company’s Balance Sheet at December 31, 20X6.
4. Analyze Post Shrub, Inc., by answering these questions:

a. Was Post Shrub profitable during 20X6? By how much?

b. Did retained earnings increase or decrease? By how much?

c. Which is greater, total liabilities or total equity? Who owns more of Post Shrub’s assets, creditors of the company or Post Shrub’s shareholders?

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Land... 8,000 Equipment 36,300 Note payable.. 32,500 Interest expense. 4,850 Property tax expense. 1,500 Interest payable.... 1,000 Rent expense. 13,200 Accounts payable. 13,500 Accounts receivable.. 27,000 Salary expense.. 37,000 Service revenue.... 143,000 Building.......... 129,200 Supplies 1,700 Cash.......... 15,000 Utilities expense...................... 3,000 Share capital. 16,250