The assets and liabilities of Web Services Inc. as of December 31, 2014 and revenues and expenses for the year ended on that date are listed here.

Beginning retained earnings were $60,000, and dividends totaled $30,000 for the year.
Requirements
1. Prepare the income statement of Web Services Inc. for the year ended December 31, 2014.
2. Prepare the company's statement of retained earnings for the year.
3. Prepare the company's balance sheet at December 31, 2014.
4. As CEO of Web Services Inc., answer the following questions and then decide if you would be pleased with Web Services' overall performance in 2014?
a. Was Web Services profitable during 2014? 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 Web Services' assets: creditors or Web Services' shareholders?

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$ 8,000 32,000 2,000 15,000 25,000 150,000 2,000 3,000 Equipment Interest expense Interest payable.. Accounts payable Salary expense... Building $ 11,000 4,000 2,000 15,000 40,000 126,000 8,000 15,000 Note payable Property tax expense Rent expense le. Service revenu Supp Utilities expense Common shares ..