Income Statement and Balance Sheet Green Bay Corporation began business in July 1998 as a commercial fishing operation and passenger service between islands. Shares of stock were issued to the owners in ex- change for cash. Boats were purchased by making a down payment in cash and signing a note payable for the balance. Fish are sold to local restaurants on open account, and cus- tomers are given 15 days to pay their account. Cash fares are collected for all passenger traffic. Rent for the dock facilities is paid at the beginning of each month. Salaries and wages are paid at the end of the month. The following amounts are from the records of Green Bay Corporation at the end of its first month of operations:

Required 1. Prepare an income statement for the month ended July 31, 1998. 2. Prepare a balance sheet at July 31, 1998. 3. What information would you need about Notes Payable to fully assess Green Bay's long-term viability? Explain your answer.

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B5 BS * Accounts receivable A Boats A $18,500 Is Dividends - IS Capital stock DE S+Cash A E 80,000 40,000 7,730 5,400 Fishing revenue A 21,300 BS-Notes payable L 60,000 Passenger service revenue R 12,560 Rent expense E 4,000 Retained earnings ??? -Salary and wage expense 18,230