Selected accounts of Albright Consulting, Inc., a financial services business, have the following balances at January 31, 2013, the end of its first year of operations. During the year, Lilly Albright, the only shareholder, bought $49,700 of shares in the business.

Office Furniture         $ 20,000

Utilities Expense          13,500

Accounts Payable           9,500

Notes Payable              21,500

Service Revenue        155,000

Accounts Receivable    10,500

Supplies Expense           3,700

Rent Expense             $36,000

Cash                             15,600

Office Supplies              1,400

Salary Expense             43,000

Salaries Payable             1,000

Property Tax Expense    3,000

Equipment                    40,000

Requirements

1. Identify each as an asset, liability, revenue, or expense.

2. Prepare the income statement of Albright Consulting, Inc. for the year ended January 31, 2013. What is the result of operations for 2013?

3. Assuming the balance in Retained Earnings on January 31, 2013, was $5,800, what was the amount of the dividends during the year? Answer by preparing a statement of changes in retained earnings to solve for the dividends. Recall that the business has just completed its first year and has no beginning balance for retained earnings.