Prepare the income statement and balance sheet; identify certain financial information (Learning Objective 6) 25–30 min.

Presented here are the amounts of Assets, Liabilities, Stockholders’ Equity, Revenues, and Expenses of Alpha, Inc., at October 31, 2014. The items are listed in alphabetical order.

The retained earnings balance of the business was $75,600 at October 31, 2013.
Requirements 1. Identify each amount shown as an asset, liability, or stockholders’ equity.
2. Prepare the company’s income statement and statement of retained earnings for the year ended October 31, 2014.
3. Prepare the company’s balance sheet at October 31, 2014.
4. Answer these questions about the company:

a. What was the profit or loss for the year?

b. What was the increase or decrease of retained earnings for the year?

c. What is the amount of economic resources on October 31, 2014?

d. What is the amount owed on October 31, 2014?AppendixLO1

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Accounts Payable.... Accounts Receivable.. $ 13,700 Interest Expense $ 7,500 15,100 Land........... 40,000 Advertising Expense.. 19,600 Note Payable....... 75,000 Building......... 142,000 Property Tax Expense 4,900 Cash............ 24,800 Rent Expense 24,000 Common Stock. 75,000 Salaries Expense. 91,300 Dividends.. 28,000 Salaries Payable. 4,750 Equipment..... 51,000 Service Revenue 210,000 Insurance Expense... 3,600 Supplies........ 2,250