The assets and liabilities of Post Shrub as of December 31, 2010, and revenues and expenses for

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


The assets and liabilities of Post Shrub as of December


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?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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