On May 1, Steven Rumford started Skyline Flying School, a company that provides flying lessons, by investing $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2017, and the revenues and expenses for the month of May.

Steven Rumford made no additional investment in May, but he withdrew $1,700 in cash for personal use.
Instructions
(a) Prepare an income statement and owner's equity statement for the month of May and a balance sheet at May 31.
(b) Prepare an income statement and owner's equity statement for May assuming that the data above need to be adjusted for the following items: (1) $900 worth of services were performed and billed but not collected at May 31, and (2) $3,300 of gasoline expense was incurred but not paid.

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Cash Accounts Receivable Equipment Service Revenue Advertising Expense $ 6,500 7,200 64,000 Notes Payable Rent Expense Maintenance and Repairs Expense 30,000 1,200 400 2,500 400 800 8,600 Gasoline Expense 500 Insurance Expense Accounts Payable