or its apparent growth philosophy. E1-8 The following items and amounts were taken from Motte Inc.'s 2014 income state- ment and balance sheet. Cash Retained earnings Cost of goods sold Salaries and wages expense Prepaid insurance Inventory $ 84,700 123,192 438,458 115,131 7,818 64,618 $ 88,419 584,951 6,499 49,384 4,806 1,882 Accounts receivable Sales revenue Notes payable Accounts payable Service revenue Interest expense Instructions (a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholder's equity (SE), revenue (R), or expense (E) item. (b) Prepare an income statement for Motte Inc. for the year ended Decembar 1 2014
or its apparent growth philosophy. E1-8 The following items and amounts were taken from Motte Inc.'s 2014 income state- ment and balance sheet. Cash Retained earnings Cost of goods sold Salaries and wages expense Prepaid insurance Inventory $ 84,700 123,192 438,458 115,131 7,818 64,618 $ 88,419 584,951 6,499 49,384 4,806 1,882 Accounts receivable Sales revenue Notes payable Accounts payable Service revenue Interest expense Instructions (a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholder's equity (SE), revenue (R), or expense (E) item. (b) Prepare an income statement for Motte Inc. for the year ended Decembar 1 2014
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
e1-8 solution
![or its apparent growth philosophy.
E1-8 The following items and amounts were taken from Motte Inc.'s 2014 income state-
ment and balance sheet.
Cash
Retained earnings
Cost of goods sold
Salaries and wages expense
Prepaid insurance
Inventory
$ 84,700
123,192
438,458
115,131
7,818
64,618
$ 88,419
584,951
6,499
49,384
4,806
1,882
Accounts receivable
Sales revenue
Notes payable
Accounts payable
Service revenue
Interest expense
Instructions
(a) In each, case, identify on the blank line whether the item is an asset (A), liability (L),
stockholder's equity (SE), revenue (R), or expense (E) item.
(b) Prepare an income statement for Motte Inc. for the year ended Decembar 1
2014](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F794105c7-0c0e-4644-9eaa-49cbffc112a1%2F4bd8c4ac-a8ff-448a-b9b9-7775e555cd1f%2Fa5m15ch.jpeg&w=3840&q=75)
Transcribed Image Text:or its apparent growth philosophy.
E1-8 The following items and amounts were taken from Motte Inc.'s 2014 income state-
ment and balance sheet.
Cash
Retained earnings
Cost of goods sold
Salaries and wages expense
Prepaid insurance
Inventory
$ 84,700
123,192
438,458
115,131
7,818
64,618
$ 88,419
584,951
6,499
49,384
4,806
1,882
Accounts receivable
Sales revenue
Notes payable
Accounts payable
Service revenue
Interest expense
Instructions
(a) In each, case, identify on the blank line whether the item is an asset (A), liability (L),
stockholder's equity (SE), revenue (R), or expense (E) item.
(b) Prepare an income statement for Motte Inc. for the year ended Decembar 1
2014
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