Five individuals organized Miami Music Corporation on January 1. At the end of January 31, the following monthly financial data are available:

Total Revenues…………………………... $ 131,000

Operating Expenses………………………… 90,500

Cash…………………………………………          30,800

Accounts Receivable………………………   25,300

Supplies……………………………………..       40,700

Accounts Payable…………………………..   25,700

Common Stock………………………………  30,600

No dividends were declared or paid during January.

Required:

1. Complete the following income statement and balance sheet for the month of January.

2. Did Miami Music Corporation generate a profit? Which financial statement indicates this?
3. Does Miami Music Corporation have sufficient resources to pay its liabilities? Which financial statement indicates this?

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MIAMI MUSIC CORPORATION Income Statement For the Month Ended January 31 Total Revenues Operating Expenses Net Income MIAMI MUSIC CORPORATION Balance Sheet At January 31 Assets Cash Accounts Receivable Supplies Total Assets Liabilities Accounts Payable Total Liabilities Stockholders Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity