The assets and liabilities of Post Oak, Inc., as of December 31, 2012, and revenues and expenses for the year ended on that date follow.

Beginning retained earnings was $114,000, and dividends totaled $37,000 for the year.

Requirements
1. Prepare the income statement of Post Oak, Inc., for the year ended December 31, 2012.
2. Prepare the company’s statement of retained earnings for the year.
3. Prepare the company’s balance sheet at December 31, 2012.
4. Analyze Post Oak, Inc., by answering these questions:
a. Was Post Oak profitable during 2012? 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 Oak’s assets, creditors of the company or the Post Oak’sstockholders?

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S 9,000 Equipment Lan Note payable Property tax expense. Rent expense Accounts receivable Service revenue147,000 Building.123,000 Supplies Utilities expense S 36,000 5,100 1,200 8,000 30,000 2,100 Interest payable.. 11,000 Accounts payable. 30,000 Salary expense 2,300 Cash 20,000 5,000