Clay Corporation was organized by five individuals on January 1, 2011. At the end of January 2011, 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, 2011 ............... 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 2011) ............. 26,450

Contributed capital (2,600 shares) ............ 59,800

No dividends were declared or paid during 2011.

Required:

Complete the following two statements:

CLAY CORPORATION

Income Statement

For the Month of January 2011

Total revenues ................$_______

Less: Total expenses (excluding income tax) ....________

Pretax income ................________

Less: Income tax expense .............________

Net income ..................$_______

CLAY CORPORATION

Balance Sheet

At January 31, 2011

Assets

Cash ....................$_______

Receivables from customers ..........________

Merchandise inventory ............________

Total assets ..................$_______

Liabilities

Payables to suppliers .............$_______

Income taxes payable .............________

Total liabilities .................________

Stockholders’ Equity

Contributed capital ..............________

Retained earnings ................________

Total stockholders’ equity ............________

Total liabilities and stockholders’ equity .......$_______