Required information The following information applies to the questions displayed below Mott Company has a line of credit with Bay Bank. Mott can borrow up to $470,000 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 imerate. Funds are borrowed or repeld on the first day of each month. Interest is payable in cash on the last day of the month. The Interest rates applied to the outstanding monthly balance. For example, Mott Days 6 percent 5 percent + 1 percent annual Interest on $67000 for the month of January Prime Rate for the Month, Month January February March April through October November December Amount Borrowed or (Repaid) $ 67,000 54,000 (37.000) No change (30,000) 117.000) No change Mott earned $32,000 of cash revenue during 2018. Required a. 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 Assets Assets Liabilities. Stockholder Accounts Titles Liabilities Equity Retained Event Note Retained Earnings Cash payable Earnings January Februar Februar March March April May June July August Septemder October November November December December Revenud Required information The following information applies to the questions displayed below Mot Company has a ne of credit with Bay Bank, Mott can borrow up to $470.000 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 bank's are rate. Funds are borrowed or read on the first day of each month. Interest is payable in cash on the last day of the month. The Interest rates applied to the outstanding monthly balance. For example, Mott pays 6 percent (5 percent +1 percent annual Interest on $67000 for the month of January Prime Rate for the Month, Month February Amount Borrowed or (Repaid) $ 67.000 54,000 (37,000) No change (30,000) (17.000) No change April through October November Mott earned $32,000 of cash revenue during 2018. b. Prepare an Income statement, balance sheet and statement of cash flows for 2018. Complete this question by entering your answers in the tabs below. Income Balance Stmt of Statem... Sheet Cash Prepare the income statement for 2018. (Round intermediate calculations and final answers to nearest whole dollar amount.) MOTT COMPANY Income Statement For the Year Ended December 31, 2018 Income Statement Balance Sheet >
