E1-8 The following items and amounts were taken from Motte Inc.'s 2014 income state- ment and balance sheet. Cash $ 84,700 Accounts receivable $ 88,419 Retained earnings 123,192 Sales revenue 584,951 Cost of goods sold 438,458 Notes payable 6,499 Salaries and wages expense 115,131 Accounts payable 49,384 Prepaid insurance 7,818 Service revenue 4,806 Inventory 64,618 Interest expense 1,882 Instructions (a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholder's equity (SE), revenue (R), or expense (E) item. (b) Prepare an income statement for Motte Inc. for the year ended December 31, 2014. 1.. Use the following data to determine the total dollar amount of assets to be classified as current assets. Koonce Office Supplies Balance Sheet December 31, 2014 Accounts payable Salaries and wages payable Mortgage payable Total liabilities $ 140,000 20,000 160,000 $320,000 Cash $ 130,000 Accounts receivable 100,000 Inventory 110,000 Prepaid insurance 60,000 Stock investments 170,000 Land 180,000 Buildings $210,000 Less: Accumulated depreciation (40,000) 170,000 Trademarks 140,000 Total assets $1.060,000 Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $240,000 500,000 $740,000 $1,060,000