The assets and liabilities of Post Shrub as of December 31, 2010, and revenues and expenses for the year ended on that date follow.

Beginning retained earnings was $112,000, and dividends totaled $42,000 for the year.

Requirements
1. Prepare the income statement of Post Shrub, Inc., for the year ended December 31, 2010.
2. Prepare the company’s statement of retained earnings for the year.
3. Prepare the company’s balance sheet at December 31, 2010.
4. Analyze Post Shrub, Inc., by answering these questions:
a. Was Post Shrub profitable during 2010? 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 Shrubs assets, creditors of the company or Post Shrubsstockholders?

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Land.. Note payabl S 9,000 Equipment. 36,000 4,950 1,100 13,500 Accounts payable..14,000 38,000 144,000 Building.129,000 15,000 ommon stock……….. 16,450 33,000 Interest expense 1,900 Interest payable ... Rent e Accounts receivable...26,000 Salary expense Service revenue. supplies … Utilities expense 2,000 Cash. .. ..