[The following information applies to the questions displayed below.]

Mott Company has a line of credit with Bay Bank. Mott can borrow up to $410,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the year. 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 $60,000 for the month of January.

Month	Amount Borrowed or (Repaid)						Prime Rate for the Month, %
January		$	60,000					6
February			42,000					6
March			(30,000	)				7
April through October	No change						No change
November			(21,000	)				7
December			(15,000	)				6

Mott earned $26,000 of cash revenue during the year.

! 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 $410,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the year. Mott agreed to pay interest at an annual rate equal to 1 percent above the bank's 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 $60,000 for the month of January. Month January February March April through October November December Amount Borrowed or (Repaid) $ 60,000 42,000 (30,000) No change (21,000) (15,000) Prime Rate for the Month, % 6 6 7 No change 7 6 Mott earned $26,000 of cash revenue during the year. 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 Account Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) ming your dll Income Statement Balance Sheet Stmt of Cash Flows Prepare the income statement for the year. (Round amount.) MOTT COMPANY Income Statement Service revenue Expenses Interest expense Net income Income Statement Balance Sheet Stmt of Cash Flows Prepare the balance sheet for the year. (Round intermediate calculations and final answers to MOTT COMPANY Balance Sheet Assets Cash $ 0 Total assets Liabilities Notes payable 0 Total liabilities Stockholders' Equity Retained earnings 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 Luupiele unuis quesLIOI DY enteny your answers in the Laus Delow. Income Statement Balance Sheet Stmt of Cash Flows Prepare the statement of cash flows for the year. (Cash outflows should be indicated with a minus sign. calculations and final answers to nearest whole dollar amount.) MOTT COMPANY Statement of Cash Flows Cash flows from operating activities: Paid for interest Receipts from revenue $ 0 Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities: Proceeds from note 0 0 Net cash flow from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 0