The assets and liabilities of HD Radio Corporation as of December 31, 20X8, and revenues and expenses for the year ended on that date follow.

Beginning retained earnings were $10,000, and dividends totaled $50,000 for the year.
Required
1. Prepare the income statement of HD Radio Corporation for the year ended December 31,
20X8.
2. Prepare HD Radio's statement of retained earnings for the year.
3. Prepare HD Radio's balance sheet at December 31, 20X8.
4. Analyze HD Radio Corporation by answering these questions: (Challenge)
a. Was HD Radio profitable during 20X8? 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 HD Radio's assets, creditors of the company or the HD Radio stockholders?

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Property tax expense.4,000 Accounts receivable Advertising expense...13,000 Buildi Sa lary expense Sa lary payable Service revenue.. Supplies $78,000 . 85,000 19,000 23,000 10,000 40,000 20,000 9,000 Land ...1 12,000 Note payable Accounts payable... ing..50,000 63,000 1,000 Kent expense Cash Common stock Furniture Interest expense.. 3,000