The assets and liabilities of Web Services Inc. as of December 31, 2017 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, 2017.
2. Prepare the company's statement of retained earnings for the year.
3. Prepare the company's balance sheet at December 31, 2017.
4. As CEO of Web Services Inc., answer the following questions and then decide if you would be pleased with Web Services's overall performance in 2017.
a. Was Web Services profitable during 2017? 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's assets: creditors or Web Services's shareholders?

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Land Note payable Property tax expense Rent expense Accounts receivable Service revenue Supplies Utilities expense $ 11,000 4,000 2,000 15,000 40,000 126,000 8,000 15,000 S 8,000 Equipment 32,000 Interest expense 2,000 Interest payable 15,000 Accounts payable 25,000 Salary expense 150,000 Building 2,000 Cash 3,000 Common shares