The assets and liabilities of Web Services Inc. as of December 31, 2020 and revenues and expenses for the year ended on that date are listed here

Beginning retained earnings were \(\$ 60,000\), and dividends totalled \(\$ 30,000\) for the year.
{Requirement}
1. The CEO of Web Services Inc., would like you to answer the following questions and then tell her if she should be pleased with Web Services's overall performance in 2020. Be sure to prepare and cite all the accounting information needed to answer these questions.

a. Was Web Services profitable during 2020? By how much?

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

c. Who has a larger claim on Web Services's assets, its creditors or its shareholders?

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Land...... Note payable Property tax expense. Rent expense. Accounts receivable. Service revenue Supplies...... Utilities expense $ 8.000 Equipment $ 11,000 32.000 Interest expense.. 4,000 2,000 Interest payable. 2,000 15.000 Accounts payable........ 15,000 25,000 Salary expense.. 40,000 150,000 Building 126,000 2.000 Cash.. 8,000 3,000 Common shares.. 15,000