The assets and liabilities of Post Elm ?Inc., as of December? 31, 2016?, and revenues and expenses for the year ended on that date? follow:. Equipment. . . . . . . . . $114,000
Land. . . . . . . . . . . . . $21,000
Interest expense. . . . . 10,600
Note payable. . . . . . . . 99,400
Interest payable. . . . . . 3,200
Property tax expense. . 7,500
Accounts payable. . . . .23,000
Rent expense. . . . . . . .41,400
Salary expense. . . . . .108,100
Accounts receivable. . .84,200
Building. . . . . . . . . . . 403,000
Service revenue. . . . .458,600
Cash. . . . . . . . . . . . . .48,000
Supplies. . . . . . . . . . 6,500
Common stock. . . . . . .7,300
Utilities expense. . . . . .8,900
Beginning retained earnings was $364,700?, and dividends totaled $103,000
for the year.
1. Prepare the income statement of Post Elm?, ?Inc., for the year ended December?31, 2016.
2. Prepare the? company's statement of retained earnings for the year.
3. Prepare the? company's balance sheet at December? 31, 2016.
4. Analyze Post ElmPost Elm?,?Inc., by answering these? questions:
a. Was Post Elm profitable during 2016?? By how? much?
b. Did retained earnings increase or? decrease? By how? much?
c. Which is? greater, total liabilities or total? stockholders' equity? Who has a greater claim to Post Elm's ?assets, creditors of the company or the Post Elm ?stockholders?
Requirement 1. Prepare the income statement of Post Elm?, Inc. for the year ended December? 31, 2016.
?Let's begin the heading and then complete the rest of the statement. ?(If a box is not used in the financial statements leave the box? empty; do not select a label or enter a? zero.)