Mott Company has a line of credit with Bay Bank. Mott can borrow up to $510,000 at any time over the course of the 2018 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during 2018. Mott agreed to pay interest at an annual rate equal to 1 percent above the banks prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Mott pays 7 percent (6 percent + 1 percent) annual interest on $78,000 for the month of January.

Month	Amount Borrowed or (Repaid)						Prime Rate for the Month, %
January		$	78,000					6
February			54,000					6
March			(45,000	)				7
April through October	No change						No change
November			(33,000	)				7
December			(18,000	)				6

Mott earned $36,000 of cash revenue during 2018.

Required

1. Organize the information in accounts under an accounting equation. (Round your answers to the nearest whole dollar amount. Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.)

MOTT COMPANY
Effect of Events on the Accounting Equation 2018
Event	Assets	=	Liabilities	+	Stockholders' Equity	Accounts Titles / Retained Earnings
	Cash	=	Note Payable	+	Retained Earnings
January	not attempted	=not attempted	not attempted	+not attempted	not attempted	not attempted
January	not attempted	=not attempted	not attempted	+not attempted	not attempted	not attempted
February	not attempted	=not attempted	not attempted	+not attempted	not attempted	not attempted
February	not attempted	=not attempted	not attempted	+not attempted	not attempted	not attempted
March	not attempted	=not attempted	not attempted	+not attempted	not attempted	not attempted
March	not attempted	=not attempted	not attempted	+not attempted	not attempted	not attempted
April	not attempted	=	not attempted	+	not attempted	not attempted
May	not attempted	=	not attempted	+	not attempted	not attempted
June	not attempted	=	not attempted	+	not attempted	not attempted
July	not attempted	=	not attempted	+	not attempted	not attempted
August	not attempted	=	not attempted	+	not attempted	not attempted
September	not attempted	=	not attempted	+	not attempted	not attempted
October	not attempted	=	not attempted	+	not attempted	not attempted
November	not attempted	=not attempted	not attempted	+not attempted	not attempted	not attempted
November	not attempted	=not attempted	not attempted	+not attempted	not attempted	not attempted
December	not attempted	=not attempted	not attempted	+not attempted	not attempted	not attempted
December	not attempted	=not attempted	not attempted	+not attempted	not attempted	not attempted
Revenue	not attempted	=	not attempted	+	not attempted	not attempted
Bal.	0	=	0	+	0

2. Prepare an income statement, balance sheet, and statement of cash flows for 2018.

MOTT COMPANY
Income Statement
For the Year Ended December 31, 2018
not attempted	not attempted
Expenses
not attempted	not attempted
not attempted	not attempted
not attempted

MOTT COMPANY
Balance Sheet
As of December 31, 2018
Assets
not attempted	not attempted
not attempted	not attempted
Total assets		$0
Liabilities
not attempted	not attempted	not attempted
not attempted	not attempted	not attempted
Total liabilities		0
Stockholders Equity
not attempted	not attempted
not attempted	not attempted
Total stockholders equity		0
Total liabilities and stockholders equity		$0

MOTT COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash flows from operating activities:
not attempted	not attempted
not attempted	not attempted
not attempted	not attempted
Net cash flow from operating activities		$0
Cash flows from investing activities:		not attempted
Cash flows from financing activities:
not attempted	not attempted
not attempted	not attempted
not attempted	not attempted
Net cash flow from financing activities		0
Net change in cash		0
not attempted		not attempted
Ending cash balance		$0