Acc280 Financial Accounting: P1-3A On May 1,Skyline Flying School, a company

Acc280 Financial Accounting

P1-3A
On May 1, Skyline Flying School, a company that provides flying lessons, was started with an investment of $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2008, and the revenues and expenses for the month of May.
Cash 5,600 Notes Payable 30,000
Accounts Receivable 7,200 Rent Expense 1,200
Equipment 64,000 Repair Expense 400
Lesson Revenue 7,500 Fuel Expense 2,500
Advertising Expense 500 Insurance Expense 400
Accounts Payable 800
No additional investments were made in May, but the company paid dividends of $1,500 during the month.

Instructions
(a) Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31.
(b) Prepare an income statement and a retained earnings statement for May assuming the following data are not included above: (1) $900 of revenue was earned and billed but not collected at May 31, and (2) $1,500 of fuel expense was incurred but not paid.
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