Exercise 1-8

The following items and amounts were taken from Motte Inc.s 2014 income statement and balance sheet. In each case, identify on the item is an asset, liability, stockholders' equity, revenue, or expense item.

Stockholders' EquityRevenueExpenseAssetLiability		Cash		$ 86,593
RevenueAssetExpenseStockholders' EquityLiability		Retained earnings		124,523
RevenueStockholders' EquityAssetLiabilityExpense		Cost of goods sold		438,226
RevenueExpenseAssetLiabilityStockholders' Equity		Salaries and wages expense		118,687
Stockholders' EquityAssetLiabilityRevenueExpense		Prepaid insurance		7,895
LiabilityRevenueAssetExpenseStockholders' Equity		Inventory		64,185
ExpenseLiabilityAssetStockholders' EquityRevenue		Accounts receivable		89,789
LiabilityExpenseStockholders' EquityAssetRevenue		Sales revenue		584,421
Stockholders' EquityLiabilityAssetRevenueExpense		Notes payable		6,766
AssetLiabilityStockholders' EquityRevenueExpense		Accounts payable		56,090
ExpenseRevenueAssetLiabilityStockholders' Equity		Service revenue		5,418
ExpenseStockholders' EquityAssetLiabilityRevenue		Interest expense		1,806

Prepare an income statement for Motte Inc. for the year ended December 31, 2014.