Five individuals organized Moncton Clay Corporation on January 1, 2014. At January 31, 2014, 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
Contributed Capital .................................. 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. Discuss whether Moncton Clay Corporation will be able to pay its liabilities. Consider the relationship between total assets and total liabilities.

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MONCTON CLAY CORPORATION Income Statement For the Month Ended January 31, 2014 Total Revenues Operating Expenses Net Income MONCTON CLAY CORPORATION Balance Sheet At January 31, 2014 Assets Cash Accounts Receivable Supplies Total Assets Liabilities Accounts Payable Total Liabilities Shareholders' Equity Contributed Capital Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity