Selected accounts of Albright Consulting, Inc., a financial services business, have the following balances at January 31,2010, the end of its first year of operations. During the year, Lilly Albright, the only stockholder, bought $49,700 of stock in the business.

Requirements 1. Identify each as an asset, liability, revenue, or expense.
2. Prepare the income statement of Albright Consulting, Inc., for the year ended January 31,2010. What is the result of operations for 2010?
3. Assuming the balance in Retained Earnings on January 31, 2010, was $5,800, what was the amount of the dividends during the year? Answer by preparing a statement of retained earnings to solve for the dividends. Recall that the busi¬ ness has just completed its first year and has no beginning balance for retained earnings.

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Office Furniture.... $ 20,000 Utilities Expense.. 13,500 Rent Expense. Cash............ $36,000 15,600 Accounts Payable. 9,500 Office Supplies. 1,400 Notes Payable 21,500 Salary Expense.. 43,000 Service Revenue 155,000 Salaries Payable......... 1,000 Accounts Receivable 10,500 Property Tax Expense..... 3,000 Supplies Expense.. 3,700 Equipment............... 40,000