Chapter 1, Problem 1.12E

Preparing an Income Statement and Balance Sheet

Clay Corporation was organized by five individuals on January 1, current year. At the end of January of the current year, the following monthly financial data are available:

Total revenues	$299,000
Total expenses (excluding income taxes)	184,000
Income tax expense (all unpaid as of January 31)	34,500
Cash balance. January 31	70,150
Receivables from customers (all considered collectible)	34,500
Merchandise inventory (by inventory count at cost)	96,600
Payables to suppliers for merchandise purchased from them (will be paid during February of the current year)	26,450
Common stock	59,800

No dividends were declared or paid during January.

Required:

Complete the following two statements:

CLAY CORPORATION Income Statement For the Month of January, Current Year
Total revenues	$
Less: Total expenses (excluding income tax)	______
Pretax income	______
Less: Income tax expense	______
Net income	$

CLAY CORPORATION Balance Sheet At January 31, Current Year
Assets
Cash	$
Receivables from customers	______
Merchandise inventory	______
Total assets	$
Liabilities	______
Payables to suppliers	$
Income taxes payable	______
Total liabilities	______
Stockholders’ Equity
Common stock	______
Retained earnings	______
Total stockholders’ equity	______
Total liabilities and stockholders’ equity	______